3 ms·
Whats the point of auditing then if its not to find fraud?
by spoonfeeder006 4y ago
Whats the point of auditing then if its not to find fraud?
- hef19898 4y agoCompliance to rules and regulations, as well as sufficient internal controls. If you, say, make up bank accounts and fake the account statements an auditor, say, EY, might just acceot those at face value. Until your company, say Wirecard, is forced by external pressire from short sellers and the FT, to conduct another audit from another auditor and everything falls appart.
- convolvatron 4y agoplausible deniability
- LatteLazy 4y agoAuditing is checking someone added up the numbers right and put the right things in the right columns. Auditing is not actually checking the money exists or the transactions were real or the products paid for were really delivered etc. If I say Acme Inc received 2$ in revenue and spent 1$ in costs, it's cash on hand should go up 1$. If I get that right, I pass that bit of the audit. Whether acme actually got paid or not or even exists is not the auditors problem: just 2-1=1.