Regulatory Alerts2023-06-29
Sharper on Fraud Risks: Results of the Investigation into Fraud Risk Analysis by Accounting Organizations
The Dutch Authority for the Financial Markets (AFM) issued this report following an investigation into the quality of fraud risk analysis performed by 13 accounting organizations during 2021 statutory audits. The findings reveal that while mandatory procedural steps are generally followed, the professional skepticism and depth of analysis are frequently insufficient, resulting in audit findings in 27 of the 32 reviewed cases. The regulator urges accountants to adopt a more critical and in-depth approach to identifying fraud risk factors and assessing risks, particularly by engaging more effectively with management and governance bodies.
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