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PROFESSIONAL SKEPTICISM OF AUDITORS AND RISK OF FRAUDULENT FINANCIAL REPORTING
Slivija Pretnar Abičić
; Megaprodukcija d.o.o., Zagreb, Hrvatska
Sažetak
Fraudulent financial reporting refers to the deliberate misstatements, omissions or significant disclosures in the financial statements in order to deceive users of financial statements. The frequency of fraudulent financial reporting is increasing and the auditor should perform an audit with an attitude of professional skepticism and a questioning mind, a critical assessment of the audit evidence and to be alert, especially when considering and assessing fraud risk in order to provide reasonable assurance that the financial statements are free from material misstatements caused by fraud. Skepticism depends on the individual characteristics of the auditor, but skepticism will be also affected by the professional knowledge, training and experience with the significant audit firm's role in the creation and implementation of policies and procedures that promote the importance of skepticism during the audit process. The auditor is not responsible for the prevention and detection of fraud, but it is the responsibility of the management, which must establish appropriate fraud risk management program. The auditor is expected that with an attitude of professional skepticism implements procedures to identify and estimate the risk of fraud, performs appropriate procedures in response to the assessed risk of fraud, particularly in the evaluation of the collected evidence, and to communicate identified risks and express an opinion on the financial statements. Results of the research indicate, that the auditors, although recognizing the importance of skepticism, do not demonstrate the appropriate level of skepticism when assessing the risk of fraud. Therefore, there is need of continuous education about fraud and emphasizing the importance of skepticism at the audit firm level.
Ključne riječi
professional skepticism of auditors; risk assessment; audit; fraud; fraudulent financial reporting
Hrčak ID:
143426
URI
Datum izdavanja:
30.6.2014.
Posjeta: 3.887 *