Besvigelser: En vurdering af revisors værktøjer til at afdække regnskabsmanipulation

Kasper Frølich Kristensen

Student thesis: Master thesis


The thesis contains the techniques an accountant has at his disposal to detect fraud. The thesis describes difficulties within the moral hazard problem shown through the agency theory. The legislature has provided some instruments within the audit process to counter the risk of agent’s mistakes. The thesis describes how auditing are focussed on risk and risk management. The thesis focuses on the audit process based on internal control. To understand the audit process the thesis describes the law that the auditor has to follow, as well as the COSO framework and risk management in order to contain knowledge about internal control. The audit society, and organized uncertainty are brought to the reader’s knowledge through Michael Power’s theories. When discussing the framework for the detection of fraud, Michael Power’s view on internal control in the audit process is analysed to discuss if business risk auditing, and internal control has properly executed the proper detection. The last theory explained in chapter 2 is the theory about the expectation gap. The expectation gap is described so that the analysis can discuss if the performance of the auditor honour the expectation from the society. Four events of fraud are described and analysed within the reviewed theory. The analyses use the fraud triangle to show why someone is committing fraud and points out the responsibility of the management to detect, and protect the company against fraud. The thesis then explain what the company can do to counter risks with the risk management framework. The thesis shows which limitations that internal control gets, and discusses the auditor’s role of the auditor to give confidence to the public. Then the audit process is discussed, and last but not least the thesis discusses if the performance of the auditor honour the expectation from the society. The thesis concludes that the audit process based on internal control is not a good way to detect fraud. It would have been better if auditors based the audit on substantive audit procedures. Furthermore the thesis concludes that there is an expectation gap between auditor’s performance, and the expectations of the society. The expectation gap is a problem for the society, and should be solved by accountants by giving information about the framework of audit to the society.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2010
Number of pages101