A corporate audit fiasco can break a business, and this makes a mistake and fraud detection a priority to the companies. Fraud will not only harm the company financially but will also affect the reputation and the goodwill of the company. Frequently, every company will employ an accountant on their payroll. Still, even the accountant of the company may make a mistake, or there is a more in-depth and eviler plan going on in the company.

Types of Fraud Auditing:

There are two types of fraud audit services in Dubai which can be very harmful to the business:

1. Misappropriation of Assets:

Asset misappropriation is one of the common types of fraud prevalent among companies. Diversion usually composed of two kinds that are:

Skimming of cash to be given to a thing:

In the case of larceny of wealth, it is confronting to uncover as the transaction has not yet been documented, making this kind of fraud very easy to hide. It also does not need vast knowledge or sophistication. Examples of Such misappropriation are false expense reimbursement, fraudulent billing schemes, cheque tampering, etc.

Misuse of company assets:

The misuse of the assets of the company is another prevailing kind of asset misappropriation. In this, the assets of the people or group of individuals working in the company misuse the various holdings of the company. This is very uncertain as it would not only enhance the liability of the company but will also it is indicative of the private use of the company’s assets.

2. Financial Statement Fraud:

Financial statement frauds are not as common as misappropriation of assets but can be very harmful to the company. It involves issuing the wrong statements about earnings, assets, etc. or can hide the liabilities to show more assets to the shareholders. This doctoring of the financial statements will show a meaningful increase in profitability, but the real truth will be different. One of the most pre-eminent examples of Financial Statement Fraud is the fraud created by Enron Corporation.

The audit report impersonated by the auditor at the end of the complete audit process will provide us with the full and detailed information about the working of the company and any fraudulent activity happening in the company.

Process of Fraud Investigation:

The method of fraud investigation and auditing involves a detailed and detailed assessment of all the economic records of the business, intending to find any fraudulent activity which is conducted in the company. The auditor will find evidence in the form of witnesses, reports, or any other means of proof of any fraud occurring in the company.

Detection of Fraud:

Accounting and Bookkeeping are only the first ranks of defense against any fraud being conducted. The International Financial Reporting Standards prescribes various fraud detection methods that should be performed during each audit irrespective of the company or industry. These methods are:

• Conduction of a fraud brainstorming session
• Manipulation of Journal entries
• Look out fraud or the illegal activity happening in the company
• Conduction of periodic and sudden reviews of the working and the financial statements of the company.