Besvigelser: En analyse af konsekvenser og udfordringer ved omsætningen af RS 240 ajourført til praksis

Henrik Søgaard & Morten Pedersen

Student thesis: Master thesis


We are in a time of financial crisis worldwide and the incentive to commit fraud in companies might therefore be increasing. There is a pressure on the overall management of the Danish companies to obtain and fulfill the expectations made by shareholders and financial partners. Topic relevance is supported by the recent corporate scandal, where IT Factory went bankrupt and AIU's annual report which concludes that auditors may well be better to conduct risk assessment activities and assess the design and implementation of internal controls. To highlight the implications and challenges by translating RS 240 revised into practice, we will investigate how RS 240 revised is applied in practice based on interviews with board members, accountants and the group's own experience. In the thesis we will define the terms "fraud" and "internal controls", and what function they have in practice. Subsequently, we will assess how RS 240 revised is applied. Then we come up with practical proposals for the audit, the auditor may use to reduce the risk of errors due to fraud. It can be concluded that the auditor in several areas do not follow the RS 240 revised in practice, especially when they are auditing small class B firms. This is due to the audit of the small class B firms where it does not always make sense to perform all audit procedures the way RS 240 revised recommends. Since the auditor should perform all audit procedures as the RS 240 revised recommends regardless of the size of the company to be audited, this is considered to be one of the consequences of translating RS 240 revised into practice.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2010
Number of pages137