Abstract—Criminal activities generate significant illegal money and need to launder this money so that they can be integrated into the legitimate financial system. Economic and financial crimes that called white-collar crimes, typically has diffuse costs to society and concentrated benefits for the perpetrators. The social expectations are that the auditors should play an effective role in reducing, if not eliminating, these crimes. New auditing standards require auditors to take a proactive approach to assessing whether management has in place appropriate systems and controls to manage the risk of fraud. Also the UK government ha s introduced legislation that requires accountants and auditors (and other financial advisers) to play a central role in the detection/reporting of fraud and money laundering. This legislation expects accountants and auditors to override their commercial concerns and report suspicious transactions and schemes to regulators. This paper shed light on nature, impacts and types of economic and financial crimes, and then the role of auditing profession in fighting against them.
Index Terms—Economic and financial crimes, money-laundering, Auditing profession.
M. Aslani is with Department of Accounting, Toyserkan Branch, Islamic Azad University, Toyserkan , Iran.
F. lotfaliyan is with Department of Accounting, Malayer Branch, Islamic Azad University, Malayer , Iran.
M. Ghasemi is with Young Researchers’ Club, Toyserkan Branch, Islamic Azad University, Toyserkan, Iran.
Cite: Mohammad Aslani, Fatemeh lotfaliyan, and Maziyar Ghasemi , "Financial Crimes Auditing," International Journal of Trade, Economics and Finance vol. 3, no. 1, pp. 34 -38, 2012.