Academic and professional models for assessing fraud risk have evolved considerably over several decades. Updated models provide expanded frameworks for auditors to use in their assessments. A professional liability insurance company's recent claims experience highlights differences in the public's perception of the auditor's responsibility for detecting fraud versus the actual requirements of professional standards and good practice.Both points of view suggest implications for improved audit practice. This course examines fraud in the financial statement audit from an academic and professional perspective that is concerned with conceptual models, and a professional liability insurance company's claims experience. Upon completion of this course, the reader should be able to: Explain the various conceptual models for assessing fraud risk; List the strengths and weaknesses of each model; Describe public versus auditor perceptions of the auditor's responsibility for fraud detection; Explain the implications of evolving models of fraud risk and malpractice claims experience for audit practice .