A South African Perspective on the Solidification of Auditor’s Competence in the Areas of Testing for the Presence of Fraud and Corruption

Kgabo Freddy Masehela () and David Mhlanga
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Kgabo Freddy Masehela: University of Johannesburg, Soweto Campus
David Mhlanga: University of Johannesburg

Chapter Chapter 18 in Post-Independence Development in Africa, 2023, pp 321-343 from Springer

Abstract: Abstract Around the world, the accounting profession and corporations are beset by scandals and criticism. Auditors’ opinions on financial accounts are erroneous, which causes this. Wealthy influential individuals, as well as political involvement in the profession, may have an effect. Auditing firms and their auditors have been implicated in fraudulent transactions, negligence, and dishonest practices. There has always been an alarming amount of corporate governance scandals in South Africa and globally. Developed countries such as the United States and the United Kingdom have suffered the same fate as South Africa in the aftermath of these scandals. The problem is that fraud and corruption exist in the accounting profession and accounting firms. The goal of this study is to figure out what causes fraud and corruption in the auditing industry in South Africa and around the world. Data was collected from the available secondary literature, and document analysis was used to analyze the data. According to the findings, audit firms in South Africa and other countries should place a greater emphasis on promoting integrity and ethical values and invest more in anti-fraud controls such as whistle-blower lines, which encourage auditors to report fraud and misconduct without fear of retaliation from their employers. This can help in the reduction of corrupt activities which will have a positive impact on the economic growth and development of the South African economy.

Keywords: Accounting firm; Fraud; Corruption; Audit opinions; Auditors; International regulatory body for auditors (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-031-30541-2_18

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DOI: 10.1007/978-3-031-30541-2_18

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