The Use of the Financial Analysis in Improving the Efficiency and Effectiveness of the External Auditor in Detecting Financial Fraud - An Analytical Study

Alfateh Alamin Elfaki

Abstract


This study aims to developapracticalframeworkfortheInternationalAuditingStandardNo.(520) and the statement of auditStandardNo.(56)by illustrating howtoapplyfinancial analysisto help theauditortodiscover financial fraudandalso clarify how to usethe process ofbrainstorming. The researcher found that financial analysis itself does not lead to detect financial fraud, but helps to identify factors that may involve the existence of financial fraud, that relies on the financial analysis un comparing its results with any standards do not achieve the target purposes.The main recommendations: Auditor should apply analytical procedures at the process, to help the auditor to understand the customer's work. Expedition of audit testing should be a reflection of responses of financial analysis .

Keywords


Fraud; Brainstorming; Analytical procedures; Liquidity; Potential distortions

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DOI: http://dx.doi.org/10.18533/ijbsr.v3i11.318

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International journal of business and social research (Print)
ISSN 2164-2540

International journal of business and social research (Online)
ISSN 2164-2559

[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]