• Register
Return to: Home > News > Auditors’ role in tackling financial crime

Auditors’ role in tackling financial crime

Accountancy Europe has released frequently asked questions explaining the role of the auditor in tackling financial crime, the legal basis of their responsibilities and what auditors can do in practice.

The publication is based on the information paper Auditor’s role in fighting financial crime published in December 2017, which outlined how auditors should follow up suspicious fraud or non-compliance activity with company management and authorities. Audit is not a guarantee against financial crime, the FAQ report highlighted, as there are limitations to the extent an auditor can legally tackle an issue, but auditors can increase the chances of detection.

According to the report, financial crime costs the EU economy €120bn (USD $148.7bn), compared to the total EU budget of €145bn, it also costs companies 5% of annual turnover, as well as reputational damage.

In order to address expectations from society on the auditors role, legislators and standard setters introduced; the EU Anti-Money Laundering Directive (AMLD), International Standards on Auditing (ISAs), and International Ethics Standards Board for Accountants (IESBA) standards.

Considering that the auditor contributes to the integrity of financial statements, it is important that the responsibility is shared with the company’s board and management to prevent, deter and uncover financial crime.

Accountancy Europe called for a coordinated approach from business leaders, the accountancy profession, regulators, standard setters and the financial sector to successfully tackle financial crime.

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.