Using the Expectations Model to Help Detect Financial Fraud
Abstract
Statements on Auditing Standards (SASs) No. 109 describes the auditor gain enough understanding of the firm to assess the risk of material misstatement of the financial statements due to either error or fraud. The analytical model and case presented here demonstrates a technique for developing expectations and providing a benchmark for comparing actual to expected results to check for fraud. The model is especially appropriate in evaluating a company’s growth. Expectations Model Financial Fraud