How can Auditors Locate White Collar Crime? (2017 Update)

White Collar Crime

If you’re an auditor inspiring to bring a change in the business industry, then unraveling the white-collar crimes can be an ideal head-start. Since such a financial crime is the most difficult to unearth, thereby, extra effort and intuitiveness is required to get the job done. The post specifically refers to the external auditors, as internal auditors form part of the status quo, i.e. they are regular employees of the entity. Although, they can, if they wish so, decide to be the whistle blower.


Fraud Risk Assessment

An auditor first needs to conduct fraud risk assessment. The preliminary evaluation can then help the auditor make further inroads into the possible fraud risks prevalent within the organization. Barring aside the rest, the focus of this piece is to locate the white-collar crimes. The amounts involved are huge, the stakes are high, and the top management personnel are the ones involved. Such a cobweb makes it extremely difficult to detect fraud. An external auditor should spend considerable time getting to know the entity and the control procedures it has in place. Knowing the organization and the management is an integral part of an audit, and something that can be helpful in terms of external audit as well.


Fraud Incentives

Fraud is committed when there’s an incentive to do so. Even if the controls are effective enough, the management of an organization would have an idea of how to get through it. If few of the management personnel decide to work together and manipulate the internal controls, then they’d be in a position to commit financial fraud. All of this can go unscathed, particularly if the auditor does not pay much attention to the mentioned fact. Discussions should be held with the management and the possibility of a white-collar crime should be gauged by the auditor. What procedures to be followed and the questions to be asked to the management is a subjective concept, and it varies from situation to situation.


A Questioning Mind

An auditor is to probe financial statements and the financial information related thereof. For that, s/he needs to go about the business with a questioning mind. Only then the auditor would be able to detect all types of fraud, including white-collar crimes. It must be noted that suspecting everything isn’t what it implies, rather being skeptical and looking for answers is what the auditor should do to unearth white-collar crimes. Have it covered- Good to go!

Best Credit SG Pte Ltd is one of the oldest and best money lender in Singapore. We are confident when we say this because we know what we are doing. Formerly known as Cing Dien Credit, we have help numerous people to get through their  cash flow problems. As a licensed money lender for more than 30 years, we have been working hard and constantly updating ourselves with the latest trends. If you need cash, you can trust that we know what we are doing.

Furthermore, we are one of the few money lenders open on Sunday in Singapore. We know that it isn’t easy to rush over after work. Thus we have extended our opening hours to include the weekends as well. Whatever cash amount you require, we will be able to help you.

If you have any questions, you can call us at +65 6272 5538. Our loan officers You can also visit us at  Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372. The nearest MRT is Bukit Gombak, we are directly opposite it!

Loan Finder Review
Review Date
Reviewed Item
interesting read on what auditors do and how they do it
Author Rating