Even with all the publicity surrounding the issue of financial fraud in the last decade, most auditors, investors, and other professionals still do not “get it” when it comes to detecting fraud. Traditional financial statement audits were never designed to detect fraud….
The bottom line is that those who are confident that audits will find fraud are fooling themselves. Nothing could be further from the truth. The occasional instance of auditors detecting fraud during a financial statement audit does not mean that audits are effective at detecting fraud. This article discusses the nine most common reasons why auditors miss fraud that is occurring right under their noses….
via Escaping Detection: Why Auditors Do Not Find Fraud — Fraud Files Forensic Accounting Blog