Why Audit will Continue to Fail!

Abstract

University BackgroundThe Wirecard €1.9 billion missing cash and 3.2 billion debt scandals have ignited the conversation about audit complacency in the financial reporting process. Financial statement fraud, audit failures and the sudden collapse of companies without any warning signs have increased in size and occurrence recently, and Wirecard is another example of this. While we were still anguishing on the Wirecard scandals and the inability of their auditor to pick up this material fraud, then came Lookers, the UK car dealership company, and the revelation of it overstating its profitability by £25.5 million (Campbell, 2020).Financial statement fraud is not new. This list is unending when we talk about financial statement fraud. Management has always deployed different techniques to portray a good outlook for their companies through manipulations of financial statements. This can be dated back to the

Bridging the Gap: Integrating Forensic Accounting Skillsets for Enhanced Audit Quality in the Post-Pandemic Era

“…For instance, Germany's Wirecard fraud case shows the lapses in audits conducted by Ernst and Young (EY) over the course of ten years (Storbeck, 2021;Awolowo & Garrow, 2020). Also, the Carillion fraud scandal in the United Kingdom (UK) reveals KPMG's unprofessional performance on audits carried out over nineteen years (Jolly, 2022;Garrow, Awolowo, & Growe, 2019;Izza, 2019;Plimmer, 2018).…”