The potential role of audit in detecting corruption

Abstract

Corruption is a pervasive issue worldwide, and auditing is considered an effective tool in preventing and detecting corruption within organizations. Previous studies have mainly focused on the ability of auditing to prevent corruption. However, this article systematically explores the potential of auditing in detecting corruption. Research shows that corrupt organizations often have errors in their financial statements. As a result, to play a more prominent role in the fight against corruption, auditing standards must include corruption in the definition of fraud. Public and private sector auditors should collaborate and share information and techniques to efficiently detect corruption.