Classification and systematisation of fraud schemes identified in a financial statement audit

The paper evaluates the scale of fraud and analyzes the role of auditing in its detection. Differences between corporate fraud and fraud in the context of auditing are identified. Fraud schemes related to illegal appropriation of assets and fraudulent financial reporting, including improper asset valuation, timing differences, overstatement or understatement of revenues and expenses, as well as inadequate disclosure of information, are systematized. Each scheme is illustrated with examples. Special attention is given to the peculiarities of applying fraudulent schemes in the Russian accounting practice. The research results are intended to simplify the process of assessing the fraud risks and developing responsive procedures during the audit of financial statements. The developed methodological approaches may be of interest to practicing auditors and other professionals in the field of financial control and analysis.