The Role of the Auditor And Fraud Risk Management
While the direct responsibility of uncovering incidents of fraud has never been directly delegated to auditors, somehow it seems this duty has become expected of them by those higher up.
They seem to be under the impression that auditors should automatically fill the position of an internal compliance program. As a result, people immediately begin to wonder why these facts were not discovered by the auditors first, whenever such activity is found out through some other means. You can get detailed information about online fraud risk assessment via various online sources.
This communication breakdown often referred to as an "expectations gap," has been approached as of late by the Center for Audit Quality (CAQ) in conjuncture with the Public Company Accounting Oversight Board (PCAOB) and the Treasury Department in an attempt to educate the public about the auditor's actual role as opposed to those they are erroneously expected to fulfill.
According to the CAQ, the auditor's true role is to examine those areas of a company that they deem to be most susceptible to acts of misconduct. Due to the fact that not every transaction is to be examined by the auditor, there is always the chance that evidence of fraud and misconduct will go overlooked, even with this focus in mind.
Since this is the only real communications link between the auditor and a company's investors, it has been suggested that this information be added to the audit report. Some have begun to angrily question what the value of the auditor is if not to fulfill this function, in response to this information, however,