THE ROLE OF AUDITING PROFESSION IN DETECTING FRAUDS IN FINANCIAL STATEMENTS
Abstract
Bearing in mind the increasingly complex economic environment and the emergence of new types of fraud, it is important to see what role the audit profession plays in detectingfraud and providing reasonable persuastion about fraud. The aim of this paper is to explain how the process of auditing financial statements works. The paper distinguishes between an auditor, a fraud auditor and a forensic accountant. The similarities and differences between these professions and their interrelationships are specified. The methodology used in the paper is content analysis. The results of the analysis revealed that audit and forensic accounting are inextricably linked in detection of fraudulent actions.
References
American Institute of Certified Public Accountants (AICPA). (1993). White Paper, AICPA, 1993, https://www.aicpa.org/, accessed on May 12, 2019
Association of Certified Fraud Examiners (ACFE). (2018). Report to the nations, 2018 global study on occupational fraud and abuse, http://www.acfe.com/, accessed on September 5, 2018
Atağan G. & Kavak A. (2017). Relationship between fraud auditing and forensic accounting. International Journal of Contemporary Economics and Administrative Sciences, 7(3-4), 194-223.
Beke-Trivunac J. (2015). Koncept materijalnosti sa stanovišta finansijskog i nefinansijskog izveštavanja, FINIZ 2015 - Contemporary Financial Management, Belgrade: Singidunum University, pp. 41-44.
Committee of Sponsoring Organizations (COSO), (2013).
DeFond, M. & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2), 275-326.
Duffield, G. & Grabosky, P. (2001). The psychology of fraud Trends and Issues in Crime and Criminal Justice, Australian Institute of Criminology, Canberra Google Scholar.
Global IIA, International Professional Practices Framework, http://www.eciia.eu/what-we-do/what-is-internal-auditing/, accessed on November 12, 2018
Hall, A. J. (2011). Accounting information systems. South-Western Cengage Learning, USA.
Hodžić, N. &Gregović, N. (2016). Značaj revizorskog mišljenja za ekonomske odluke eksternih korisnika finansijskih i revizorskih izvještaja korporacije. Ekonomski izazovi. 5(9), 114-125.
Kassem R. & Higson A. (2012). Financial Reporting Fraud: Are Standards’ Setters and External Auditors Doing Enough?. International Journal of Business and Social Science, 3(19), SSRN: https://ssrn.com/abstract=2343625, accessed on May 25, 2019
Knežević, S. & Mitrović, A. (2017). Analysis of the opinions in the audit reports of companies in the hospitality sector: accommodation and catering service, The Second International Scientific Conference - Tourism in function of development of the Republic of Serbia, Тourism product as a factor of competitiveness of the Serbian economy and experiences of other countries, Thematic Proceedings II, Vrnjačka Banja: Faculty of Hotel Management and Tourism in Vrnjačka Banja, 324-340.
Ministarstvo finansija. (2010). Konceptualni okvir za finansijsko izveštavanje, mfin.gov.rs, accessed on May 19, 2019
Mitrić, M., Stanković, A. & Lakićević, A. (2012). Forenzičko računovodstvo – karika koja nedostaje u obrazovanju i praksi. Menadžment – Časopis za teoriju i praksu menadžmenta, 65, 41-50.
Mitrović, A. & Radovanović, A. (2018). Audit Reports on Serbian Hospitality Companies: Expressed Opinions and Lexical Borrowings, Economic Insights – Trend and Challenges, VII(LXX), No. 1/2018, 33-40.
Petković, A. & Cvetković, D. (2018). Interne kontrole protiv kriminalnih radnji u funkciji pouzdanog finansijskog izveštavanja, Revizor: (21) 82, 33-44.
Spisak revizorskih firmi, Privredna komora Srbije, 2018. https://www.pks.rs/.
Singleton, T. W. & Singleton, A. J. (2010). Fraud auditing and forensic accounting. John Wiley & Sons.
Soltani, B. (2007). Auditing: An international approach. Pearson education.-
Vukadinović, P., Knežević, G. & Mizdraković, V. (2015). The characteristics of forensic audit and differences in relation to external audit. FINIZ 2015 - Contemporary Financial Management, Belgrade: Singidunum University, pp. 202-205.
Zakon o državnoj revizorskoj instituciji, Službeni glasnik RS, br. 101/2005, 54/2007 i 36/2010.
Zakono o računovodstvu i reviziji, Službeni glasnik, br. 46/2006.
Zakon o računovodstvu, Službeni glasnik RS, br. 62/2013 i 30/2018.
Zakon o reviziji, Službeni glasnik RS, br. 62/2013 i 30/2018.
Zakona o tržištu kapitala, Službeni glasnik RS, br. 31/2011, 112/2015 i 108/2016.