Unit 10 - Fraud Analysis

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Raging Pineapples
Raging Pineapples Registered Posts: 110 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
I'm working on unit 10, and would just like some thoughts on Fraud.

How many types of fraud/error should I analyse? I have one high-risk example and two low-risk ones.

If I think up 2 more, should that be enough?

EDIT: My tutor explained that Fraud can in this context simply mean error; so it need not only comprise deliberate malicious acts. By that standard, would such things as computer viruses and trojans be applicable? I should imagine so, along with Identity theft (trojan used to steal customer data and sell it on to 3rd parties).

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  • visha
    visha Registered Posts: 218 Dedicated contributor 🦉
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    You need to identify POTENTIAL areas of fraud from CONTROL avoidance
    You need to wear your auditor’s hat here and think where and how can a company lose it’s assets through avoidance of control.
    For example. Can a check out operator in the supermarket defraud the company?
    If so how?
    How likely it is?
    If it does happen what impact will that have on the company?
    How can you prevent it?

    But of course you will be considering the above issues on employee’s working the accounting department.

    If you have thought of 3 examples then that is sufficient for your project purposes.
    Does Fraud mean Errors. It’s a question of judgement. But if your tutor is happy with that, then that's fine because your objective is get the project completed and signed off.

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