2 ms·
that's the central conflict of interest revealing itself right there (of auditors being paid by their client). it's in the best interest of the auditor to ignor
by clairity 8y ago
that's the central conflict of interest revealing itself right there (of auditors being paid by their client). it's in the best interest of the auditor to ignore potential fraud so as to have plausible deniability in any legal actions.
while financial audits are primarily focused on how good the numbers match up and how well the controls in place help to do that, an audit wouldn't be done if it weren't for the potential for uncovering fraud up and down the hierarchy.
forensic accounting is also a thing, outside of government.
- bigjimmyk3 8y agoHave you been talking to my wife today? Because she reminded me of forensic accounting as soon as I got home. Yes, that is a thing but it's not part of a normal financial audit (at least not in the US).
- clairity 8y agoha, no i haven't been, but you're right that forensic auditing isn't normally included in ordinary audits. an honest auditor will recommend one however, if they see something fishy in the regular audit.
- majewsky 8y ago> forensic accounting This should have its own TV crime series.