The Effect of Professional Doubt of Auditor on Discovering Auditor's Frauds
Babak Pour Bahrami, Zohre Nameni · 2012
Auditor’s report is a brief and important document which increases the credibility of a set of financial statements and makes it more acceptable for investors, creditors, government and other users. Information mentioned in audit’s reports and various audit declarations play a significant role in the process of decision making and informed judgments of those who use these reports. In the present research attempts have been made to obtain the degree of the relationship between audit’s professional doubt and discovering the auditee’s fraud. It has also been tried to determine what degree of professional doubt would lead to a qualified report. Measuring professional doubt indicates recognition of the issue that in which place an audit can reach a level higher than other auditors or qualified audits. Also, by employing tests related to measuring professional doubt the point which shows an optimum level of professional doubt can be identified. This point has a significant role in the quality of the audit since different opinions of audit reports has a significant influence on decision making and judgments of the users of the financial statements. The statistical population in this piece of research includes managers, audits and professional supervisors of the National Organization of Audit. The relationship between professional doubt on discovering fraud and also on the quality of the audit report has been considered in the current study. Research findings indicate that there is a direct relationship between professional doubt and discovering fraud and also the quality of audit report. It has also been shown that with increase of professional doubt the degree of discovering the fraud increases and as a result it can lead to appropriate increase in the quality of audit reports.