Auditor: A watchful guardian

The auditing profession should consider whether some elements of forensic audit be included in audit procedures

Large-scale frauds were reported almost in every decade from the time business became an important component of the social system. Risk management, including fraud risk management, is the primary responsibility of the board of directors. Audit plays an important role in deterring directors and employees from committing fraud. However, the audit procedures are insufficient for detecting fraud, particularly those that are committed by trusted employees, because the auditor’s role is not that of a detective. In 1896, in the Kingston Cotton Mill Company case in the UK, it was established that the auditor's role is that of a watchful guardian.