Categories: Others

Risk of Material Misstatement and Risk of Fraud

Will we chartered accountants now place a greater priority on the ROF (Risk of Fraud) than the ROMM (Risk of Material Misstatement)? While both are essential and sometimes compliment or complement each other, we need ferocious bloodhounds to protect for larger participation of both public & Foreign Institutional Investor in Indian market

According to top official of the National Financial Reporting Authority, many financial frauds/misdoings could have been identified and stopped in their tracks if the concerned auditors had informed stakeholders to the circumstances in question in a timely manner.

“Not only in hindsight but otherwise also, I believe that had many of the violations that we observe in our proceedings been pointed out by the auditors to the shareholders and other stakeholders in time, many of the financial frauds/misdoings could have been detected & averted at an early stage,” National Financial Reporting Authority Chairperson Ajay Bhushan Prasad Pandey told The Press Trust of India Ltd in an interview.

He was responding to a question regarding corporate misdoings in the nation throughout the years/time. Auditors have frequently been the target of regulatory scrutiny. The regulatory body has been taking action to further tighten the methods and auditing system. It has taken any action against certain negligent auditors and issued numerous audit quality as well as acted against some erring auditors.

In case you want the best forensic auditors in India to assist you with your legal matters? Your one-stop solution for all legal support services is Rajput Jain & Associates. Get thorough information from us about forensic audits for your company and safeguard it against financial fraud.

Tags: forensic auditors

3 years ago

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.