Fundamental or enhancing roles? The dual roles of external auditors and forensic accountants

Marianne Ojo, James A. DiGabriele

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

In view recent developments which have resulted in the replacement of attributes of relevance and reliability with a new categorization of fundamental qualitative characteristics of accounting information and enhancing qualitative characteristics of accounting information, this chapter is aimed at highlighting why the roles of audits - and particularly accountants and auditors still serve as fundamental, vital and crucial means of verifying financial statements - such that these can be reasonably relied upon by investors in financial and capital markets. Fundamental qualitative characteristics of accounting information are categorized into relevance and faithful representation - a change from the IASB's 1989 framework. The enhancing qualitative characteristics of accounting information now comprise verifiability, understandability, comparability and timeliness. This chapter is aimed at highlighting why such enhancing characteristics could be regarded as fundamental qualitative characteristics.

Original languageEnglish
Title of host publicationValue Relevance of Accounting Information in Capital Markets
PublisherIGI Global
Pages59-78
Number of pages20
ISBN (Electronic)9781522519010
ISBN (Print)1522519009, 9781522519003
DOIs
StatePublished - 12 Dec 2016

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Ojo, M., & DiGabriele, J. A. (2016). Fundamental or enhancing roles? The dual roles of external auditors and forensic accountants. In Value Relevance of Accounting Information in Capital Markets (pp. 59-78). IGI Global. https://doi.org/10.4018/978-1-5225-1900-3.ch004