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Collusion Between Auditors And Management

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Problem Statement:
“Is it always cost effective to detect / prevent collusion between auditors and management?"

The aims of my research project:
• To find out the ways that how collusion between management and external auditors can be detected.
• To find out the potential advantages for the organization if collusion between management and external auditors forms.
• To find out the cost savings for the organization when ignoring the collusion between management and external auditors.

A brief review of previous research:
The phenomenon of detecting or preventing collusion between auditors and management leads to the study of internal controls in the organization or corporate governance. According to some recent trends, there is an increasing …show more content…

(Bratton, 2002). The Enron scandal in 2001 that resulted in the collapse of its auditor, Arthur Andersen, had the public starting to question the ethics and integrity of the financial audit process, where before this scandal it was assumed that the ethical and legal liabilities or even the reputational concern would have prevented the auditors from colluding with their …show more content…

Results will be in the form of descriptive report, facts, tables and figures that will cover the cost savings for the stakeholders and the company because of ignoring the collusion between auditors and management. We will analyze the potential advantages when the collusion is ignored and try to access real cases of the organizations when they ignored the collusion.
This topic also relates to the management fraud, where fraud can be any activity that might be intentional in a way that would result in the loss of one party over the gain of the other party, and in the case of management and auditors’ collusion, that means that there would be loss of the stakeholders and loss to the reputation of the company in the market.

Research Limitation:
Collecting the primary data might not be possible because of the access problems to the companies. Companies might not be interested in revealing the information on the topic and might feel reluctant to fill the questionnaires. Another limitation can be in the form of time availability; we might run of the time to study all the proposed objectives of the

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