The role of audit procedures according to the International Auditing Standard (ISA No. 240) in detecting and limiting fraudulent practices

Abstract

The research aims to demonstrate the role of audit procedures accordance to (ISA. No.240) in detecting and reduction  fraudulent practices in the financial statements of companies listed in the Iraqi Stock Exchange, as the standard specializes in determining the responsibility of the auditor in determining fraud when auditing financial statements. To achieve the objectives of the research, the descriptive analytical approach was used, as the opinions of a sample of auditors were surveyed by distributing (60) questionnaires and (50) valid questionnaires were retrieved for analysis, that is, at a rate of (83%), and the research problem is that “the failure of the traditional audit procedures It led to the issuance of many standards that increase and contribute to the discovery of fraudulent practices in the financial statements, so it is necessary to resort to efficient and effective procedures, which is reflected in the quality of the audit process.” According to the analysis of the results of the answers to the questionnaire, there was agreement on the importance of auditing standard 240, the auditor's responsibility for studying fraud when performing the audit of the financial statements. The research found, through the use of statistical methods, that "there is a significant relationship for the adoption of audit procedures in accordance with auditing standard 240 in discovering the risks of fraud in the financial statements of Iraqi companies." Governance and management of the economic unit to reduce and detect fraud, describes the central determinants of the audit process in the context of fraud and outlines the responsibilities of the auditor for detecting significant and effective misstatements resulting from fraud. The research recommended the necessity of contacting the offices of major auditing companies that have field experience and benefiting from their expertise in this field