Fraud and Auditors’ Responsibility

Routledge Companion to Auditing, edited by David Hay, W. Robert Knechel and Marleen Willekens, 2014

Posted: 10 May 2014

See all articles by Tina Carpenter

Tina Carpenter

University of Georgia - C. Herman and Mary Virginia Terry College of Business

Ashley A. Austin

University of Richmond

Date Written: 2014

Abstract

In this chapter, we synthesize our understanding of auditors’ responsibility for fraudulent financial reporting (i.e., fraud). The prevention and detection of fraud is an important priority for the profession, and thus we explore ways to improve auditors’ fraud investigations in the future. We broaden our understanding of this issue by documenting auditors’ and regulators’ responses to major fraud scandals throughout history, and then build on this by developing a model to summarize the current state of the academic literature in the area. We also identify the significant unresolved issues related to fraud that require the attention of researchers, regulators, and auditors. Accordingly, this chapter contributes to the literature by incorporating the perspectives of research and practice to provide insights that are informative to academics, auditors, and the profession at large, as well as to standard setters, regulators, and policy makers.

Suggested Citation

Carpenter, Tina and Austin, Ashley A., Fraud and Auditors’ Responsibility (2014). Routledge Companion to Auditing, edited by David Hay, W. Robert Knechel and Marleen Willekens, 2014 , Available at SSRN: https://ssrn.com/abstract=2428849

Tina Carpenter (Contact Author)

University of Georgia - C. Herman and Mary Virginia Terry College of Business ( email )

230 Brooks Hall
Athens, GA 30602-6254
United States
706-542-3619 (Phone)

Ashley A. Austin

University of Richmond ( email )

28 Westhampton Way
Richmond, VA 23173
United States
804-426-5422 (Phone)

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