Proposed reforms to U.K.audit are reviewed from a fraud detection and prevention perspective.A holistic four-actor model that encompasses:the directors,auditor,shareholders,and the regulator,is used to frame the discu...Proposed reforms to U.K.audit are reviewed from a fraud detection and prevention perspective.A holistic four-actor model that encompasses:the directors,auditor,shareholders,and the regulator,is used to frame the discussion.Focus is drawn to the mediating role of the Audit and Assurance Policy.The paper argues that the proposed reforms have some potential to reduce the audit expectations gap.However,the problem of agency costs and the advisory nature of shareholder voting on the Audit and Assurance Policy significantly limit the possible effectiveness of the reforms from a fraud detection and prevention perspective.Suggestions for future research are made.展开更多
文摘Proposed reforms to U.K.audit are reviewed from a fraud detection and prevention perspective.A holistic four-actor model that encompasses:the directors,auditor,shareholders,and the regulator,is used to frame the discussion.Focus is drawn to the mediating role of the Audit and Assurance Policy.The paper argues that the proposed reforms have some potential to reduce the audit expectations gap.However,the problem of agency costs and the advisory nature of shareholder voting on the Audit and Assurance Policy significantly limit the possible effectiveness of the reforms from a fraud detection and prevention perspective.Suggestions for future research are made.
