Religious audit: Could it happen here?

Article Abstract:

Islamic corporations establish religious auditing procedures and Religious Supervisory Boards to ensure that corporate officers and companies perform their religious duties, especially in prohibiting the trade of certain products (such as alcohol) and the charging of interest. These religious audit procedures are discussed in terms of three audit goals: to provide advice, to monitor compliance, and to report management of the Zakah (or Zakat) fund under Sharia rules. Zakah funds provide financing to needy people and organizations within the Islamic country; such payments may be at the discretion of the company or levied by the state, as is the policy in Saudi Arabia. The results of religious audits are reported as adjuncts to annual financial reports or as internal reports to financial directors who state opinions in annual reports as to the company's compliance with Islamic law.

Interpretation and construction, Economic aspects, Economic policy, Middle East, Islam, Corporation law, Charities, Social norms, Islamic law, Sharia (Islamic religious practice)

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Should the role of the auditor be extended?

Article Abstract:

The Auditing Practices Committee of the Institute of Chartered Accountants of England and Wales has surveyed accountants on the subject of fraud detection and reporting, and has published the results of its survey in the report 'The Auditor and Fraud'. Fifteen views which were held by a consensus of those responding to the survey are discussed. Chief among these opinions is the belief that auditors should not be responsible for uncovering and reporting fraud. The survey respondents disagreed with the general public in assigning responsibility for fraud detection and prevention. The public seems to believe that accountants and outside auditors should be responsible, whereas accountants feel that it is the duty of corporate executives to prevent fraud.

Standards, Management, Institute of Chartered Accountants in England and Wales, Surveys, Accountants

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Benson report on fraud published

Article Abstract:

Lord Benson presided over a British government committee that produced the report, 'The Auditor and Fraud', in December 1985. This report recommends that the external auditor refer suspected fraud to the Department of Trade and Industry for further investigation. The report also discusses, at some length, when fraud should be suspected to have occurred. Although independent auditors are not required by law to audit for fraudulent acts and are not legally required to detect acts of fraud, they should (according to Lord Benson's committee) investigate fraud that they suspect to have occurred.

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