{"id":538,"date":"2021-04-25T01:56:04","date_gmt":"2021-04-25T01:56:04","guid":{"rendered":"https:\/\/alminawi.com\/?p=538"},"modified":"2021-04-25T01:56:04","modified_gmt":"2021-04-25T01:56:04","slug":"audit-function-episode-08-fraud-triangle","status":"publish","type":"post","link":"https:\/\/e.americanpro.org\/?p=538","title":{"rendered":"Audit Function: Episode 08, Fraud Triangle"},"content":{"rendered":"<p data-start=\"48\" data-end=\"425\">The Fraud Triangle explains the three elements that lead to fraudulent behavior: <strong data-start=\"129\" data-end=\"141\">pressure<\/strong>, <strong data-start=\"143\" data-end=\"158\">opportunity<\/strong>, and <strong data-start=\"164\" data-end=\"183\">rationalization<\/strong>. Internal auditors use this model to identify potential fraud risks during planning and risk assessment stages. Audit sampling plays a vital role in detecting red flags by allowing auditors to examine a portion of transactions for anomalies.<\/p>\n<p data-start=\"427\" data-end=\"893\">For instance, during an audit of employee reimbursements, the auditor may use sampling to review a selection of travel expense claims. The audit reveals that a few claims lack receipts or exceed policy limits. This may indicate <strong data-start=\"655\" data-end=\"670\">opportunity<\/strong>, where weak controls allow fraud, and possibly <strong data-start=\"718\" data-end=\"730\">pressure<\/strong>, such as financial stress motivating the employee. While not every transaction is tested, sampling helps auditors uncover patterns that may point to wider issues.<\/p>\n<p data-start=\"895\" data-end=\"1092\" data-is-last-node=\"\" data-is-only-node=\"\">By combining the Fraud Triangle with audit sampling, auditors can better detect and investigate fraud risks without having to test every transaction, making the audit more efficient and insightful.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Fraud Triangle explains the three elements that lead to fraudulent behavior: pressure, opportunity, and rationalization. Internal auditors use this model to identify potential fraud risks during planning and risk assessment stages. Audit sampling plays a vital role in detecting red flags by allowing auditors to examine a portion of transactions for anomalies. For instance, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1019,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-538","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-internal-audit"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/e.americanpro.org\/wp-content\/uploads\/2021\/03\/11-e1750016225543.avif","_links":{"self":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts\/538","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=538"}],"version-history":[{"count":0,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/posts\/538\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=\/wp\/v2\/media\/1019"}],"wp:attachment":[{"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=538"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=538"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e.americanpro.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=538"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}