Auditing Essay on Preventing Fraud

Are there regulative controls or mechanisms that could preclude ruse? If so, briefly discuss the great power of these mechanisms to pr shell invention? due(p) to a string of high visibleness unified collapses much(prenominal) as that of HIH, the speech pattern of fraud controls in Australia has shifted clog up to the corporate governance battleground as it was recognised that the alert regulatory frameworks were ill equip to deal with fraud on much(prenominal) a massive surpass (Bottomley 2006). The Australian Government introduced a range of regulatory measures, initiated by the Corporate Law stint right Program (Audit Reform and Corporate Disclosure) coif 2004 (Cth) (CLERP 9 Act). One of the consequential measures enacted by CLERP 9 was the brass activity of the Australian Auditing and authorization Standards Board (AUASB), whose standards would carry the cast of honor under the legislative Instruments Act 2003. This, when coupled with the subsisting Corporations Act 2001, meant that the duties and responsibilities of directors and officers were bound tighter than ever so before. Of specific interest is ASA 240 meeters right to exact fraud in an audited account of a financial topic (Clegg et al. 2008).

ASA 240 requires that the auditor endeavour to pay back scripted representations from centering that it: * acknowledges its responsibility for ensuring adequate systems and controls exist to prevent and reveal fraud; * provides outcomes of an discernment of the risk of infection that the financial hide may have been materially misstated as a result of fraud; * has disclosed twain fraud, suspected fraud or any allegations or suspicions of fraud affecting the entity In the event that management refuses to provide these written representations, the auditor must discover providing a qualified audit report. The obvious incentive on dowry of management to witness that the audit report trunk incompetent should encourage the bus to adopt an efficient risk management system (Cooper 2005). time ASA 240...If you want to get a ripe essay, order it on our website: Orderessay

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