Fraud is defined as the intentional false representation of material fact or its concealment with the aim of making another party act on this information at his or her own peril. Fraud auditing is the responsibility of professionals known as Fraud Auditors. You can seek the services of these individuals through having them as part of the staff internally at your organization or have external auditors that work on a contractual basis. At other times, the work done by internal auditors needs to be evaluated by an independent fraud auditor in order to verify the work done internally. It is not every time that auditing is done to determine the existence of fraud in the records of an individual or organization. At times it is done as a common practice to ensure that your financial records are being kept in the right manner and internal controls are working.
Fraud Auditors have the professional responsibility to detect fraud in their line of work. Fraud detection helps them sharpen their skills as well as teaching them new techniques that are used in helping individuals and businesses detect financial malpractice in their ventures. When you notice irregularities that draw your attention, you must consider the services of a fraud auditor to determine if there is anything that requires your immediate action. Fraud auditing is able to confirm or dispel your worries through evaluation of the systems to determine irregularities.
Fraud arises in organizations generally because there are opportunities to do so or the people committing the fraud are under pressure and have a rationalization for their activities. In order to reduce the chances of fraud in your organization you need to determine the weakness in the internal controls.
Fraud auditing is a process that should be integrated into the culture of an organization so that transparency and integrity can take root. When auditing is done on a consistent basis, even those that are tempted to commit the offenses are deterred.