Reasons Why Auditor Cannot Detect Financial Statement Fraud
- Scope Limitation, this include prohibition in doing corroborative inquiry, limitation of access to required data
- Auditor lack of professional skeptism
- Auditor may choose the wrong sample
- Auditor is having lack of accounting knowledge
- Auditor is having lack of experience
- Lack of audit trail
- The evidence is seemed to be true (falsified evidence)
if u need further explanation, please email me alfri_n at yahoo.com
July 9, 2009 at 12:59 am
We are auditors, not fraud investigators. Our job is to give an opinion on the nature of a set of accounts. If, in the course of our audit, uncover fraud, kudos to us. If not, hire our collegaues – the fraud investigators.