Regnskabsmanipulation

Sammi Chikri & Betina Mette Johansen

Student thesis: Master thesis

Abstract

The main purpose of this thesis is to analyse the possibilities of how enterprises and auditors can limit/identify fraudulent financial reporting. Statistics show that 29% of all Danish enterprises have been exposed to corporate crime. 41% of it represents fraudulent financial reporting which is one of the most frequent types of corporate crime. In the thesis we have reviewed and analysed some of the enterprises’ possibilities of committing fraudulent financial reporting. Based on our review, we have drawn the conclusion that financial statement items containing elements of accounting estimates are generally at more risk of being subjected to fraudulent financial reporting, as the estimate often is based on biased managerial assessments. The background to the thesis is fraudulent financial reporting as defined in ISA 240 “The auditor’s responsibilities relating to fraud in an audit of financial statements”, including the guidelines and steps to be taken as prescribed by the Standard in connection with the identification and detection of fraudulent financial reporting. We find ISA 240 extremely pivotal and applicable, as the Standard contains appropriate guidelines on how the auditor must respond to fraudulent financial reporting. To prevent fraudulent financial reporting the enterprise can establish a reliable and strong control environment. In the thesis we have illustrated and reviewed key elements relating to how the enterprise can secure a reliable control environment to accommodate the risk of fraudulent financial reporting. Despite the establishment of a reliable control environment, it is often not possible to avoid fraudulent financial reporting completely, as management because of its authorities is able to ignore the internal controls. The focus on identification of fraud is massive, and based on new bills introduced by the European Commission, we have evaluated whether future initiatives will contribute positively to the identification and prevention of fraud. In continuation hereof the thesis clarifies how the identification and prevention of fraud can be improved by modifications to the present ISA 240 as well as other adjustments to codes of practice.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2012
Number of pages120