JOURNAL OF RESEARCH IN NATIONAL CREATION VOLUME almost 8 NO one particular, JUNE, 2010
THE PART OF AUDITORS IN FRAUD DETECTION, REDUCTION AND CREDIT REPORTING IN NIGERIA Akinyomi Oladele John
Office of Financial Research, Redeemer's University or college, Mowe Email-based: [email protected] com
This kind of study investigates the part of auditors in the recognition, prevention and reporting of fraud. Info were obtained from 184 respondents in Nigeria. The results revealed that the respondents are incredibly concerned about the problem of fraud. In addition , the respondents put very high expectation on auditors' duties upon fraud elimination and diagnosis. This belief is in distinction with the explained primary goal of an review, as agreed in ISA 200, which will merely necessary auditors to create an opinion within the financial transactions, but not of fraud recognition. Keywords: Auditors, fraud, recognition, preventionВ В
That an auditor has the responsibility for the prevention, detection and credit reporting of scam, other unlawful acts and errors is one of the most questionable issues in auditing, and has been one of the most frequently contested areas amidst auditors, political figures, media, government bodies and the public (Gay et approach 1997). This kind of debate has become especially highlighted by the fall of both small and big corporations throughout the world. The auditing profession in Nigeria has caught the media's attention following monetary scandals in some of the Nigerian banks such as Intercontinental Traditional bank, Oceanic Lender, Afribank, and Bank PHB among others. Presently there seems presently to be a misconception that auditors' duties will be largely the preventing, discovering and revealing of fraud, for example , Idris (2009). The goal of this paper is to determine financial survey users' perceptions of the degree of fraudulence in Nigeria, and to determine their perceptions of the auditor's responsibilities in detecting scam and the performance of related audit techniques. The paper also should ascertain whether or not the report users' perceptions of auditors' tasks on scams are in line with those of the auditing profession as indicated in auditing standards in Nigeria. Literature review
ScamВ В В
Fraud, according to Adeniji (2004: 354) and ICAN (2006: 206), is a great intentional work by a number of individuals among management, workers or third parties, which results in a misrepresentation of economic statements. Fraudulence can also be known as the intentional misrepresentation, concealment, or omission of the real truth for the purpose of deception/manipulation to the economic detriment of the individual or perhaps an organization which will also includes embezzlement, theft or any type of attempt to steal or unlawfully obtain, wrong use or injury the asset of the organization, (Adeduro, 98 and, Bostley and Drover 1972). Scam has increased considerably over the modern times and pros believe this kind of trend will probably continue. In accordance to Brink and Witt (1982), scams is a great ever present threat for the effective using resources but it will surely always be an essential concern of management. ISA 240 вЂThe Auditor's Responsibilities to Consider Fraudulence in an Taxation of Financial Statement (Revised)' refers to fraud as " an intentional act by one or more individuals amongst management, those charged with governance, staff or businesses, involving the use of deception to have an unjust or against the law advantageвЂќ. Aderibigbe and Daddy (2007) specify fraud as a deliberate deceit planned and executed with the intent to deprive another person of his property or privileges directly or indirectly, regardless of whether the perpetrator benefits from his or her actions. Weirich and Reinstein (2000 mentioned in Allyne & Howard 2005), define fraud while " deliberate deception, cheating and stealingвЂќ. Some prevalent types of fraud include creating fictitious creditors, " ghostsвЂќ for the payroll, distort cash sales, undeclared stock, making not authorized " write-offsвЂќ, and declaring excessive or perhaps never-incurred...
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