The Impact of Forensic Auditors on Corporate Governance

Document Type : Review Paper

Authors

1 PH.D. Student of Accounting, Shahid Chamran, University of Ahvaz, Iran

2 M.A. of Accounting, Shahid Chamran, University of Ahvaz, Iran

Abstract

The incessant financial fraud resulting to corporate collapse and the failure of the statutory audit to detect and prevent fraudulent activities which had led to the impoverishment of investors had given rise to the need for forensic auditor. This paper considers the impacts of forensic auditor on corporate governance. The study was a theoretical research which considered the roles of forensic auditors in combating fraudulent activities, distinction of forensic auditor and statutory auditor, characteristic of forensic auditor and impact of forensic auditor on corporate governance. The results of this paper show that forensic auditors having improved management accountability, strengthened external auditor, independence and assisting audit committee members in carrying out their oversight functions by providing them assurance on internal audit report and also affect positively on corporate governance, thereby the result of their works is reducing corporate failure and prevent investor losses.

Keywords

References

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Journal of Accounting and Social Interests
Volume 9, Issue 3 - Serial Number 34
December 2019
Pages 69-85

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History

  • Receive Date: 22 July 2018
  • Revise Date: 04 November 2018
  • Accept Date: 13 November 2018

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