Society expects the auditor to play an important role in uncovering financial crime. This FAQ aims to further explain the auditor’s role by answering questions we have been receiving. This publication builds on the information paper Auditor’s role in fighting financial crime which provides a comprehensive overview of the auditor’s key responsibilities.
Financial crime, such as fraud, corruption, bribery and money-laundering, affects the European Union’s (EU) economy and thereby weakens citizens’ situation and employment opportunities. Financial crime costs:
- 120 billion EUR annually to the EU economy (compared to the entire EU budget of 145 billion EUR)
- 10% extra cost of doing business
- 5% of a company’s annual revenue
- reputational damage to companies which may adversely affect their market value
Successfully standing up to financial crime depends upon a joint effort by all relevant parties, including business leaders, the accountancy profession, regulators, standard setters and the financial sector. We call for a coordinated approach by all key players to achieve tangible results.