IDEAS home Printed from https://ideas.repec.org/a/hur/ijaraf/v7y2017i1p342-352.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://hrmars.com/hrmars_papers/Article_35_The_Auditors_Responsibility_for_Finding_Errors.pdf
    Download Restriction: no
    File URL: http://hrmars.com/hrmars_papers/Article_35_The_Auditors_Responsibility_for_Finding_Errors.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shabnam Fazli Aghghaleh & Zakiah Muhammaddun Mohamed, 2014. "Fraud Risk Factors of Fraud Triangle and the Likelihood of Fraud Occurrence: Evidence from Malaysia," Information Management and Business Review, AMH International, vol. 6(1), pages 1-7.
    2. Herron, Eddward T. & Cornell, Robert M., 2021. "Creativity amidst standardization: Is creativity related to auditors’ recognition of and responses to fraud risk cues?," Journal of Business Research, Elsevier, vol. 132(C), pages 314-326.
    3. Ashari Ashari & Marthin Nanere & Philip Trebilcock, 2018. "Corruption awareness and ethical decision making in Indonesia," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(3), pages 570-586, June.
    4. Desai, Naman & Jain, Shailendra Pratap & Jain, Shalini & Tripathy, Arindam, 2020. "The impact of implicit theories of personality malleability on opportunistic financial reporting," Journal of Business Research, Elsevier, vol. 116(C), pages 258-265.
    5. Monica Ramos Montesdeoca & Agustín J. Sánchez Medina & Felix Blázquez Santana, 2019. "Research Topics in Accounting Fraud in the 21st Century: A State of the Art," Sustainability, MDPI, vol. 11(6), pages 1-31, March.
    6. Mark E. Lokanan & Prerna Sharma, 2023. "Two Decades of Accounting Fraud Research: The Missing Meso-Level Analysis," SAGE Open, , vol. 13(3), pages 21582440231, September.
    7. Ziwei Wang & Chunfeng Wang & Zhenming Fang, 2024. "Learning from Failures of Co-owned Firms: Common Ownership and Information Disclosure Fraud," Journal of Business Ethics, Springer, vol. 195(1), pages 95-119, November.
    8. Arzhenovskiy S.V. & Bakhteev A.V. & Sinyavskaya T.G. & Hahonova N.N., 2019. "Audit Risk Assessment Model," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(Special 1), pages 74-85.
    9. Ruchi Agarwal, 2018. "A multiple perspective view to rampant fraudulent culture in the Indian insurance industry," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 16(4), pages 416-437.
    10. Deepa Mangala & Pooja Kumari, 2017. "Auditors’ Perceptions of the Effectiveness of Fraud Prevention and Detection Methods," Indian Journal of Corporate Governance, , vol. 10(2), pages 118-142, December.
    11. Kris Boudt & Hong Anh Luu, 2022. "Estimation and decomposition of food price inflation risk," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 31(2), pages 295-319, June.
    12. Geoffrey Bartlett & Eric Johnson & Philip Reckers, 2014. "Accountability and Role Effects in Balanced Scorecard Performance Evaluations When Strategy Timeline Is Specified," European Accounting Review, Taylor & Francis Journals, vol. 23(1), pages 143-165, May.
    13. Desai, Naman & Gupta, Vishal, 2015. "Selective Perceptions and Group Brainstorming: An Investigation of Auditors’ Fraud Risk Assessment," IIMA Working Papers WP2015-03-14, Indian Institute of Management Ahmedabad, Research and Publication Department.
    14. Rajat Deb, 2018. "Financial Audit or Forensic Audit? Government Sector Panorama," Indian Journal of Corporate Governance, , vol. 11(2), pages 135-158, December.
    15. Shirley Wong & Sitalakshmi Venkatraman, 2015. "Financial Accounting Fraud Detection Using Business Intelligence," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(11), pages 1187-1207, November.
    16. Amani, Farzaneh A. & Fadlalla, Adam M., 2017. "Data mining applications in accounting: A review of the literature and organizing framework," International Journal of Accounting Information Systems, Elsevier, vol. 24(C), pages 32-58.
    17. Konstantinos Vasilakopoulos & Christos Tzovas & Apostolos Ballas, 2021. "Banks’ Risk and The Impact of Audit Quality on Income Smoothing," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 20(3), pages 425-453, September.
    18. Gullkvist, Benita & Jokipii, Annukka, 2013. "Perceived importance of red flags across fraud types," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 24(1), pages 44-61.
    19. Cohen, Jeffrey & Ding, Yuan & Lesage, Cedric & Stolowy, Hervé, 2008. "The role of managers’ behavior in corporate fraud," HEC Research Papers Series 900, HEC Paris.
    20. Ken T. Trotman & Roger Simnett & Amna Khalifa, 2009. "Impact of the Type of Audit Team Discussions on Auditors' Generation of Material Frauds," Contemporary Accounting Research, John Wiley & Sons, vol. 26(4), pages 1115-1142, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hur:ijaraf:v:7:y:2017:i:1:p:342-352. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hassan Danial Aslam (email available below). General contact details of provider: http://hrmars.com/index.php/pages/detail/Accounting-Finance-Journal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.