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Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain.

Why should the auditor be unwilling to take full responsibility for the detection of fraud during the annual audit? Explain.

Answers

The auditor should be unwilling to take full responsibility for the detection of fraud during the annual audit as fraud is committed with the intention to conceal it. Thus, there is a great chance that even a well planned and properly carried out audit will be unable to detect fraud. This is especially if the fraud has been perpetrated by the management of the entity. In addition, an auditor carries out his work during a very short duration of the financial period. It would be unreasonable to expect him to review everything that took place during the year, a role that could be better played by management.

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Wilfykil answered the question on February 21, 2019 at 05:42

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