Proactive fraud auditing comprises the following steps:

A$.$ Understand the business, identify risk exposures, list possible fraud symptoms, build a fraud program that looks for symptoms for each exposure, analyse results and investigate identified symptoms.

B$.$ Interview suspect, interview colleagues, search public records, interview former employees or unsuccessful vendors, and check personnel and company records.

C$.$ Compare statement balances from one period to the next, use key ratios, perform horizontal analysis and perform vertical analysis.$$