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    Audit and common fraud

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    If some frauds are deemed common, should auditors be held liable if they do not find a common fraud? Why or why not?

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    https://brainmass.com/business/fraud-earnings-management/audit-common-fraud-135750

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    Yes, an auditor should be held liable for not detecting a common fraud because he is bound by ethical principles of his profession to report any detectable fraudulent activity in an organization, no matter how minuscule it might seem at a surface level.

    Suppose that a business development manager in a printer manufacturing company uses official telephone for private purposes, say calling ...

    Solution Summary

    This solution explains why an auditor should be held liable for not detecting a common fraud, addressing ethical principles and fraudulent activity.

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