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Fraud and the Role of the Auditor


  • Post Date 2018-11-07T11:58:33+00:00
  • Post Category Essays

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Fraud and the Role of the Auditor

Fraud and the Role of the Auditor

2-3 pages, double spaced, APA format. Need works cited page at end of paper. Sources need to be peer reviewed.
Fraud and the Role of the Auditor Name Course: Professor Name: (April 10, 2012) Fraud and the Role of the Auditor Fraud Introduction Fraud is an intentional misrepresentation often caused by false accounting, prejudice and misappropriation of funds and other necessary materials within an organization. It usually occurs when the accountant is liable or said to have breached his or her contract through a false misrepresentation. Alternatively this occurs when there is some dishonesty mainly intended for some selfish gains. Fraud mainly has severe implications to the concerned party or organization as it causes some loss and in some cases it exposes such parties to some risks. This paper seeks to analyze the various concepts of frauds and the auditor`s role in it. In most cases, fraud is mainly caused by false misrepresentation of material facts within a given firm or entity. Such misrepresentation may be driven by selfish motives where the responsible party does so with an intention of maximizing his own selfish goals. In addition, fraud can sometimes occur through failure to disclose some material information. Mainly, the registered company is legally mandated to disclose their annual financial position to the public, a move which is aimed at helping the existing and potential investors in making up their own decisions. Material disclosure is also required when two parties intend to enter into a contract and it aims at letting eithe...

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