Analysis of Audit Frauds & Roads to Detect, Prevent and Respond: Real Cases Scenario

Abstract

Auditing is the word that means collecting and evaluating information and comparing that information with the established criteria. An independent and professional person should conduct audit. A professional and independent auditor always obeys to the audit standards and never takes any unethical decisions. But the real-life scenario is different. Most of the time audit procedures have not been done under proper ethical standards. After analysing most audit scandal cases, it was found that auditors had a lack of ethics and morality in their behaviour during the audit process. This report is prepared on audit scandals, frauds, and embezzlements. Prime concerns of this report are to figure out fraud conditions, types of fraud, auditor responsibilities, corporate governance, respond to risk, actions after fraud detections. As this report is made after analysing practical fraud cases like Enron collapse, WorldCom scandals, Tyco and American International Group (AIG), it will be useful for those who want to make them specialized in audit field.