|Opis:||Economic crime can be defined as ones legally prohibited actions to achieve personal, financial advantage. The thesis exposures the role of external auditors and seeks to stimulate the debate about its connection with economic crime, especially in cases when he knows about illegal actions committed by entrepreneurs and stays silent. We expose the silence of auditors to the authorities, owners and shareholders about illegal actions which should have been revealed and reported as the auditor is responsible for its opinion on the financial statements. Economic crime is a criminal offense, regulated by criminal law and so sanctioned.
Our main goal was to reveal penalties which are proposed and regulated not just by law but also by standards. As we know, many financial enterprises have announced insolvency and sought state support within a short period of receiving an unqualified audit opinion. In most cases the company´s management and employees can be connected to the crime as they are in possession of enough internal information from which they can take advantage, therefore actions taken by auditors, procedures and analytical techniques their proper implementation for the identification of minor and major errors as of crime, is highly important. The time budget given by the audit enterprises for performing the techniques has also a major influence on auditors crime identification as we believe that by reducing the budget we are reducing the possibility disclosing crime. In case the irregularities are disclosed but not reported and can be proven so, we believe there are several actions anticipated against the auditor, not just penalties but also imprisonment.
The Slovenian audit law and the Audit act provides, for now, only a fine, which depends on the size of the offense. The Agency for public oversight on auditing has the possibility to take legal actions, like withdrawing the license to perform work, if it finds violations as a signed audit report with misleading information.
Based on and the 235th act of Crime law, anyone who falses business documents, books or files to use them as true or who destroys, hides, damages or makes them otherwise unusable, can be punished. The issue of trade secrets is under the law also sanctioned, but we have to refer to the 38th act of Audit law, where the auditor in case of detection of signs of crime can be relieved of its duties of maintaining business secrets.
We believe that auditor’s knowledge has an extremely important role in revealing uncertainties and illegalities and has because of that a major influence on the audit quality. Ones actions refer to its abilities, skills and professional knowledge to use and implement the financial standards and connected laws correctly. Auditors and entrepreneurs have to know their duties, rights and sanctions. We believe that among other things it is important to have the right knowledge about ethics and business behavior. A good relationship among the auditor and entrepreneur is the only way to maintain good business, which is the basis for a high-quality audit.|