All 18 Fraud & Error Responsibilities questions
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Auditing & Assurance › Fraud & Error Responsibilities

Whose responsibility is it to prevent and detect fraud?

Beginner

Answer

The primary responsibility for preventing and detecting fraud rests with those charged with governance and management, through a strong control environment and effective internal controls. The auditor is responsible for obtaining reasonable assurance the statements are free of material misstatement from fraud or error—but is not primarily responsible for fraud prevention.
Real-world example Management builds anti-fraud controls; the auditor independently seeks reasonable assurance the statements aren't materially misstated by fraud.

Common follow-ups: Is the auditor primarily responsible for fraud prevention? | What is management's role?

Audit Objectives & Types Internal Controls Evaluation Fraud & Error Responsibilities
All 18 Fraud & Error Responsibilities questions