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The Auditor's Responsibility for Finding Errors and Fraud from Financial Situations: Case Study

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  • Dan Ioan Topor

Abstract

The purpose of this article is to highlight the auditor's responsibility for detecting errors and fraud in the financial statements of an economic entity. The approaches to the concepts of error and fraud are presented through the interpretations of the audit specialists, as well as other considerations regarding the auditor's responsibility in their discovery in the financial statements. The article is accompanied by a detailed case study in which the procedure for auditing the financial situation of an economic entity is performed by going through all stages specific to the auditing process. The article ends with the author's conclusions regarding the findings made and the auditor's responsibility for detecting errors and fraud in the financial statements.

Suggested Citation

  • Dan Ioan Topor, 2017. "The Auditor's Responsibility for Finding Errors and Fraud from Financial Situations: Case Study," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 342-352, January.
    • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:1:p:342-352
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    References listed on IDEAS

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    1. Philmore Alleyne & Nadini Persaud & Peter Alleyne & Dion Greenidge & Peter Sealy, 2010. "Perceived effectiveness of fraud detection audit procedures in a stock and warehousing cycle: Additional evidence from Barbados," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(6), pages 553-568, June.
    2. Maria Krambia-Kapardis & Chris Christodoulou & Michalis Agathocleous, 2010. "Neural networks: the panacea in fraud detection?," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(7), pages 659-678, July.
    3. T. Jeffrey Wilks & Mark F. Zimbelman, 2004. "Decomposition of Fraud†Risk Assessments and Auditors' Sensitivity to Fraud Cues," Contemporary Accounting Research, John Wiley & Sons, vol. 21(3), pages 719-745, September.
    4. Harold Hassink & Roger Meuwissen & Laury Bollen, 2010. "Fraud detection, redress and reporting by auditors," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(9), pages 861-881, October.
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