Audit scope and investigation methods for the Torpus company loan

Fraud Audit and Investigation

Define the Scope of the Audit and the Desired Outcomes

The scope of the Torpus audit is to examine the entire balance sheet and net worth of the company. Where, you will look at every aspect of the financials and physical operation. The idea is to identify any kind of issues that could have an impact upon the company receiving the loan. This is important, because it will help to show the bank that Torpus has: an economically viable business plan and that they are a good credit risk. When you put these different elements together, it will provide the loan officer with enough information to objectively analyze the business. (Siegle, 2008) (Beasley, 2008)

The desired outcomes of the Torpus audit are: to address any kind of transparency issues and identify areas that could have an impact upon the profitability of the company. Once this takes place, it will provide executives at the bank with a total overall big picture view of the underlying financial strength of the organization. (Siegle, 2008) (Beasley, 2008)

Discuss how the Audit Evidence will be evaluated and Conclusion Drawn

The audit evidence will be analyzed based upon comparing the actual numbers, with the various responses from executives at the company. In this case, we are looking for any kind of inconsistencies between: the actual numbers and what executives are saying. Those areas that come into question will be subject to further investigation and analysis. The idea is make certain that all of the various pieces of financial information are as accurate as possible. This means focusing on anything that does not make sense (in order to understand what is taking place). Once this occurs, it will help auditors be able to make an accurate conclusion about the underlying financial state of Torpus. These different elements are important, because they show how corroborating the various pieces of financial information with the interviews will help to identify any kind of anomalies. At which point, they can be analyzed to decide if this could affect the financial viability of the organization. This will provide auditors with the most accurate information, so that they can make a precise analysis of the underlying financial condition of the company. (Siegle, 2008) (Beasley, 2008)