Normal 0 21 false false false HR X-NONE X-NONE Zenzerović, R., Pušar Banović, D. and Jolić, S.: Frauds from the perspective of external auditors – Croatian experiences, Zbornik radova „Računovodstvo i menadžment” br. 23.(1), Zagreb, 2023.
Financial fraud and manipulations in financial statements often pose a significant problem for organizations, capital owners, tax authorities, creditors, potential investors, and society. In that sense, the role of external auditing is invaluable, precisely aimed at protecting the interests of all the stakeholders mentioned. External auditing primarily examines the objectivity and accuracy of fundamental financial statements. Timely detection of financial fraud and manipulations in financial statements are among the key tasks of external auditors. This paper aims to broaden the existing knowledge about fraud and how organizations respond to it from the perspective of external auditors. In addition to the research on the role and significance of external auditing in detecting financial frauds and understanding the process of uncovering financial frauds within companies, a comparison of the role and activities of internal auditing in the same process was also conducted. The primary observation derived from comparing the research outcomes of internal and external auditors reveals notable distinctions in the occurrence of fraud they detected, vulnerability to manipulation of financial statements, the nature of that manipulation, and the specific department where fraud perpetrators are employed.