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Fraud, Errors and Illegal Acts - Term Paper Example
Author : mgoldner
Finance & Accounting
Pages 5 (1255 words)
Fraud, Errors and Illegal Acts No: Date: University: Outline The basic responsibility of an auditor is to detect fraud, errors and illegal acts. As per the SAS-99, the auditors are required to perform many functions such as to collect information supportive towards fraud / risk of fraud, to examine the risk of fraud and so on…
Internal control, proper reporting mechanism and the implementation of sound accounting policies and procedures shall rest with the management due to which, role of management has increased. Forensic accountant must have in depth study of the documents presented and should have the command to use computer software and so on. Forensic auditors must have excellent written and oral communication skill. Auditors must be aware of IT application and business processes to have a grip on IT related frauds. To nab the tax dodgers, Internal Revenue Service has number of trained people who gather information from different sources / channels to be used to detect tax frauds. IRS has the power to confiscate property of the tax defaulter / tax dodger in order to pressurize them to clear their tax liabilities. FRAUD, ERRORS AND ILLEGAL ACTS The Auditors’ Responsibilities to Detect Fraud, Errors and Illegal Acts The basic responsibility of an auditor is to detect fraud, errors and illegal acts that takes place in an organization and report it to the competent committee for audit to take appropriate measures to prevent fraud, errors and illegal acts (Alleyne & Howard 2005). ...