Economic Themes (2013) 51 (2) 7, 355-375
Silviya Kostova
Abstract: Auditors’ responsibility regarding errors and fraud disclosure in financial statements is an essential element of the commitment they undertake to the users of information. Although auditors are responsible for expressing reasonable assurance that the financial statement contains no substantial deviations, the standards limit the auditor’s opinion without explicit requirement that fraud and errors be identified. Nevertheless, auditors need to apply the adequate procedures to respond to internal and external factors generating errors and fraud, which reflect on the reliability of financial statements. This will contribute to improving the performance of entities and raising the value added of conducted audits.
Keywords: audit procedures; errors; fraud; indications of fraud; auditors’ responsibilities; financial situation
AUDIT PROCEDURES FOR DISCLOSURE OF ERRORS AND FRAUD IN FINANCIAL STATEMENTS
Silviya Kostova
Abstract: Auditors’ responsibility regarding errors and fraud disclosure in financial statements is an essential element of the commitment they undertake to the users of information. Although auditors are responsible for expressing reasonable assurance that the financial statement contains no substantial deviations, the standards limit the auditor’s opinion without explicit requirement that fraud and errors be identified. Nevertheless, auditors need to apply the adequate procedures to respond to internal and external factors generating errors and fraud, which reflect on the reliability of financial statements. This will contribute to improving the performance of entities and raising the value added of conducted audits.
Keywords: audit procedures; errors; fraud; indications of fraud; auditors’ responsibilities; financial situation
