Considerations on the Independent Auditor’s Liability and Responsibility Regarding Fraud, in the Field of Statutory Audit

Author:Univ. Prof. Sorin BRICIU, Ph. D., Ciprian Teodor MIHĂILESCU, Ph. D. Student, Assistant Ana Maria CORDOŞ

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Keywords:liability, responsibility, fraud and error, material misstatements, erroneous reporting, misappropriation of assets, professional skepticism

Abstract:
This article is a synthesis of a scientific research regarding the approach of errors and frauds – defining elements in the material misstatement of accounting information presented in the annual individual or consolidated financial statements of entities. The responsibilities in relation to audit engagements performed by statutory auditors are highlighted, both in what regards those who prepare these synthesis documents, according to the requirements of the applicable financial reporting framework, and the firms of audit partners, auditors who perform audit engagements.\r\nSince, at global, but also at regional level, we are witnessing major trends and approaches regarding a new positioning of responsible parties’ responsibilities and liabilities related to an audit engagement, the core of a serious analysis of the phenomenon of fighting and preventing fraud acquires a new dimension. This means to obtain an improved dialogue, both at technical level, but also at the level of the relevant bodies within IFAC. Statutory auditors must report, in a more extensive manner, in what concerns risk identification. This would trigger the auditor’s liability, which, in many jurisdictions, appears as a major obstacle in expanding the risk reportings at the auditor’s level.\r\n

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