In accordance with AU-C 240, Consideration of Fraud in a Financial Statement Audit, an auditor is mainly concerned with two types of fraud: (1) fraudulent financial reporting and (2) misappropriation of assets. These two types of fraud differ in that fraudulent financial reporting is usually committed by:

You have been solicited to conduct a performance evaluation for a public organization that has been corrupted over issues of personnel embezzling funds. before actually conducting the evaluation, you—the evaluator—need to know certain specifics to conduct a thorough evaluation. compose a proposal that describes what type of evaluation will be conducted. in the proposal, explain the type of public organization. describe some of the main services, products, and activities the organization provides to the public. describe the size of the problem, who is affected by the problem, how long the problem has been in existence, and how long the evaluation will take. also, describe what the evaluation will assess with respect to organizational leadership. finally, what outcomes do you propose the evaluation will to achieve for the organization?