The role of financial auditor in detecting and reporting fraud and error

Bunget, Ovidiu-Constantin (2009): The role of financial auditor in detecting and reporting fraud and error.

Abstract

Responsibility for preventing and detecting fraud rest with management entities. Although the auditor is not and cannot be held responsible for preventing fraud and errors, in your work, he can have a positive role in preventing fraud and errors by deterring their occurrence. The auditor should plan and perform the audit with an attitude of professional skepticism, recognizing that condition or events may be found that indicate that fraud or error may exist. Based on the audit risk assessment, auditor should develop programs to audit procedures by which to obtain reasonable assurance that the financial statements in their entirety, all significant errors and fraud have been identified. It is expected that the auditor to implement procedures that will lead to the discovery of errors or fraud without significant impact on the financial statements can not be held responsible for undetected such irregularities. The auditor should communicate with the management of his client. He should ask the management information concerning any significant fraud or error has been detected in order to detect key problems that could lead to certain activities, the implementation of audit procedures more than usual However the auditor faces the risk inevitable that some significant errors to be detected, even if the audit is planned and done properly

• Item Type: MPRA Paper
• Language: English
• Keywords: fraud, error, tests, audit
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M42 - Auditing

References

1. Bunget Ovidiu Constantin – „Contabilitatea românească: între reformă şi convergenţă”, (Romanian accounting: between reform and convergence), Ed. Economică, Bucharest, 2005

2. Dobroţeanu Camelia, Dobroţeanu Laurenţiu - „Audit – concepte şi practici. Abordare internaţională”, (Audit – Concepts and Practices. International Approach), Ed. Economică, Bucharest, 2001

2. Malciu, Liliana - „Contabilitate creativă”, (Creative Accounting), Ed. Economică, 1999