Forventningskløften ifm. FIFA-korruptionsskandalen

Ali Hussein Hassan

Student thesis: Master thesis


The first point that this master thesis aims to clarify is the phenomena of corporate fraud, corruption and the possible expectation gap that might emanate from corporate fraud and corruption. In order to address this problem, it is important to clarify and define the abovementioned concepts, and how they correlate to each other. For this purpose relevant theories have been chosen.
The thesis furthermore aims to examine the responsibilities held by auditors with regards to the aforementioned phenomena. The study comes to show that the role and responsibility held by the external auditor regarding corporate fraud stands clear. However this is not the case with corporate corruption, despite the fact that corruption has serious impact on society. There is no mention of the role and responsibility of the external auditor regarding corruption in the International Auditing Standards (ISA). The definition of fraud in the ISA’s is only in concern of asset misappropriation and financial reporting fraud. However theorist and founder of Association of Certified Fraud Examiners, Joseph T. Wells, includes corruption as a form of corporate fraud in his studies.
The last point that this thesis seeks to analyse is the expectation gap that arose in connection with the still on-going FIFA corruption scandal. The auditor of FIFA through 16 years, KMPG, was criticized by different parties for not being more active in the fight against corruption, or responding to the red flags despite severe rumours of corrupt activities such as bribery in FIFA. There is clearly different views on corruption and which impacts it may have on the financial statement. As seen from the perspective of the auditors, corruption is not seen as a factor that may cause material misstatement. However allegations of corruption are very harmful to all parties involved, and even though it may not have a direct impact on the financial statement, it is something that stakeholders would want to know about. The criticism of the external auditor is therefore justified to some extent. Auditors need to be clearer about their role on corruption and be proactive in fighting corruption, in order to minimize criticism and the expectation gap. To remain passive may eventually once again cast doubt on the effectiveness of the auditor-community.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2017
Number of pages86