Auditors’ Evolving Responsibilities and the Rising Costs of Professional Negligence: A Comprehensive Examination

Awolowo Ifedapo Francis (), Garrow Nigel (), Chan Dora (), Oni Anthony () and Abidoye Adenike ()
Additional contact information
Awolowo Ifedapo Francis: Sheffield Hallam University, UK
Garrow Nigel: Sheffield Hallam University
Chan Dora: Sheffield Hallam University, UK
Oni Anthony: Sheffield Hallam University, UK
Abidoye Adenike: Sheffield Hallam University, UK

Journal of Forensic Accounting Profession, 2024, vol. 4, issue 2, 20-33

Abstract: In recent times, professional negligence has taken centre stage in the news. The inability of auditors to uncover fraud in their clients’ financial records has become a topic of intense debate among industry professionals and regulators, with no clear consensus reached thus far. This paper employs a qualitative research approach to delve into the consequences of professional negligence and why auditors will continue to face the consequences of their failure to detect fraud in their clients’ financial records. Our research findings indicate that auditors will continue to bear the brunt of professional negligence until there is a fundamental shift in their mandate, prompting them to assume a more proactive role in detecting fraud within financial statements. The repercussions of professional negligence extend beyond financial losses, encompassing intangible costs that severely tarnish the reputation of the auditing profession.

Keywords: professional negligence; auditing profession; auditors’ responsibility; fraud detection (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.2478/jfap-2024-0007 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:jfaccp:v:4:y:2024:i:2:p:20-33:n:1002

DOI: 10.2478/jfap-2024-0007

Access Statistics for this article

Journal of Forensic Accounting Profession is currently edited by Benina Veledar

More articles in Journal of Forensic Accounting Profession from Sciendo
Bibliographic data for series maintained by Peter Golla ().