BusinessCompany News‘Fraud will never be eradicated’

'Fraud will never be eradicated'

Manipulation of profits for personal gain or to boost share prices will never be totally eradicated despite efforts to clamp down on the practices in the wake of high-profile corporate collapses, audit experts warned this week.

Link: Read an interview with Ian Plaistowe

The warning was issued by Ian Plaistowe, longstanding chairman of the UK’s Auditing Practices Board, who on Tuesday put out for consultation the body’s new work programme.

The board has put taking a fresh look at its guidance on fraud detection at the top of its to-do list. The move is driven primarily by the plethora of accounting scandals that have hit the United States over the past nine months.

Plaistowe said: ‘You will not eradicate aggressive earnings management 100%. Auditors can never guarantee accounts because they are not audited to the penny.’

He reiterated that the problem of the ‘expectation gap’ was not just one for the APB but also one for governments and regulators.

‘Auditors have enormous difficulty in talking about their successes.

There’s no way we can sing the praises of auditors’ success. We are left with a conundrum,’ he said. The board also plans to tackle special purpose vehicles.’

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

3m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

7m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

7m Alia Shoaib, Reporter
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

10m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

10m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

10m Emma Smith, Managing Editor
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

10m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

10m Emma Smith, Managing Editor