Popular fraud cases (e.g., Satyam Computers Limited) have shown that fraud remains uncovered despite audit being done by one of the big four audit firms
In the 19th century, fraud detection was considered
as the primary objective of external audit (Alleyne & Howard, 2005). Later the emphasis has shifted to providing only a reasonable assurance that financial statements are free from any kind of material misstatement
Auditors are not able to detect fraud due to time pressure (Krambia-Kaparis, 2002).
In the 19th century, fraud detection was considered
as the primary objective of external audit (Alleyne & Howard, 2005). Later the emphasis has shifted to providing only a reasonable assurance that financial statements are free from any kind of material misstatement
Auditors are not able to detect fraud due to time pressure (Krambia-Kaparis, 2002).
Fraud risk assessment is an important tool for prevention and detection of fraud.PwC survey report (2011) found 14 per cent of fraud cases could be identified by risk assessment.
Moreover, PwC (2016) revealed that the presence of various red flags such as lavish lifestyle, fake bills, missing documents and disputes with vendors may indicate risk of potential fraud.
Increasing frauds and failure of auditors to detect them have given wings to the growth of forensic accounting (Razaee & Burton, 1997).
Forensic Accountants,with the combination of accounting, auditing and investigative skills (Renzhou,2011)
