Why Auditors Rarely Find Fraud

In today’s world where corporate scandals often make front page news, fraud prevention and detection are becoming a priority for management and decision makers. Typically, a large majority of midsize to large organizations consider their internal and external auditors as the pivotal tool for uncovering fraud and taking preventive measures to minimize the risk of loss incurred due to a fraud. However, this doesn’t imply that independent auditors often identify fraud, in fact, the opposite is true in many cases.

In this article, Protiviti Director Anthony Hodgkinson describes some of the reasons auditors rarely find fraud and offers suggestions on ways auditors can enhance their role in fraud detection and prevention.