أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
i do not agree , but if the auditor felt bad faith during his audit period through some of documents, he should included in his report.
A big "NO".
Basically an auditor is expected to evaluate internal control systems as designed and implemented by the company management. Such evaluation is done with the following objectives:
i. To check whether internal controls are operated as desired; or
ii. To check the adequacy of internal control system.
The purpose of evaluation is to make the management aware of the risk of fraud/ wastage of resources in advance. Here, the auditor reports the aforesaid risk like a consultant or advisor listing suitable recommendations to contain the risk before their occurence.
However, once a fraud is occured and audit was carried out then it would be more appropriate to term the audit as an investigation since the purpose is to make a detailed report on how the fraud was taken place. Hence, in case of an investigation the auditor do reports like a policeman.
No. Fraud is not presumed in each and every transaction.Auditors check the control systems and report lapses.Insulating the organisation against perpetration of frauds is the responsibility of the Management..
