Auditors Responsibility For Fraud Detection †MyAssignmenthelp.com

Question: Discuss about the Auditors Responsibility For Fraud Detection. Answer: Fraud detection is one of the most important part of auditing and the auditors needs to make sure that maximum care is maintain when he is dealing with the same. Over the years there have been so many cases of public fraud and corporate mishandling of accounts that has affected the overall financial viability of the economy(Grenier, 2017). The auditors need to make sure that while verifying the accounts they must maintain maximum amount of vigilance that there must not be any malpractices from the management of the company or the other employees. This is important to maintain the maximum amount of accuracy in the accounts of the company. The auditor is having the maximum responsibility towards the third parties as they are dependent on the audit report that is issued by the auditors. The main aim of auditing is to comment on the authenticity of the books of the account of the company(DeZoort Harrison, 2016). The need of the same has been highlighted in the code of ethics that has be en issued and the same must be taken care of by the auditor of the company. Fraud detection and prevention is one of the most important aspects of auditing. The tools for auditing cover the main aspects of risk and materiality that the auditors need to be aware of and must have full knowledge in that context. SAS 99 has been stated that covers the wide area for fraud detection and that must be followed by the auditor(Knechel Salterio, 2016). The auditors needs to follow a proper steps that will help them in collecting the maximum amount of information and assessing the risk that will relate to material misstatement that might be there in the books of account. The auditor is having equal responsibility not just for the company but also for the third parties that depends on these audit report to take important decisions that might affect their overall finances. Basic steps in fraud detection is fraud brainstorming session, testing the overall journal testing and making the necessary accounting estimates and check whether there are any unusual transactions that needs special supervision. These are the ways in which the auditor can rectify the fraud(Laursen Thorlund, 2016). Bibliography DeZoort, F. Harrison, P., 2016. Understanding Auditors sense of Responsibility for detecting fraud within organization. Journal of Business Ethics, pp. 1-18. Grenier, J., 2017. Encouraging Professional Skepticism in the Industry Specialization Era. Journal of Business Ethics, 142(2), pp. 241-256. Knechel, W. Salterio, S., 2016. Auditing:Assurance and Risk. fourth ed. New York: Routledge. Laursen, G. Thorlund, J., 2016. Business Analytics for Managers: Taking Business Intelligence Beyond Reporting. Second ed. CANADA: Wiley Publisher.