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Fraud And Error. Auditors' Responsibility Levels

Author

Listed:
  • Dan Åžtirbu
  • Maria Moraru
  • Nicoleta Farcane
  • Rodica Blidisel
  • Adina Popa

Abstract

Are auditors responsible for detecting fraud in the companies they inspect? Most of the public thinks they are. Auditors often demur. The auditors' duties for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditing. This paper reports the findings of a survey that explores the financial report users' perceptions on the extent of fraud in Romania and their perceptions of auditors' responsibilities in detecting fraud and the related audit procedures. This study also finds that there is a widely held misperception of the objective of an audit. This is because, among respondents, a much higher expectation has been placed on the auditors' duties in detecting and reporting fraud than statute or audit standards require. The results of the study show unquestionably the existence, with respect to detection of fraud, of a gap between the perception of the respondents and the present statutory requirements of auditors.

Suggested Citation

  • Dan Åžtirbu & Maria Moraru & Nicoleta Farcane & Rodica Blidisel & Adina Popa, 2009. "Fraud And Error. Auditors' Responsibility Levels," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 1-5.
    • Handle: RePEc:alu:journl:v:1:y:2009:i:11:p:5
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    References listed on IDEAS

    as
    1. Grant Gay & Peter Schelluch & Ian Reid, 1997. "Users' Perceptions of the Auditing Responsibilities for the Prevention, Detection and Reporting of Fraud, Other Illegal Acts and Error," Australian Accounting Review, CPA Australia, vol. 7(13), pages 51-61, May.
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    More about this item

    Keywords

    fraud; auditors' responsibilities; audit expectation gap;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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