The auditor and fraud detection : an interpretation of the Companies Acts from 1844 to 1989.

The primary focus of this research is on understanding the role of the auditor towards
fraud detection. More specifically, it is concerned with ascertaining the statutory audit
objectives (relating to fraud detection) from all the relevant Companies Acts since
1844. In addition, it offers some sociological interpretations of the shifts in
responsibility and the emergent meanings over time.
The contents of this research are divided into three major parts. The first takes a
critical look at the nature of auditing research conducted in this area, paying particular
attention to its methodological underpinnings. It concludes that this quantitative
knowledge stock does not adequately deal with the epistemological and philosophical
concerns primarily because of the dominant scientific and functionalist assumptions
upon which such knowledge is based. It is argued to be an inappropriate foundation
upon which to build to satisfy the problem focus adopted by this research project. The
second part presents a case for and describes the design of a methodological approach
called 'EIS!' (Epiphanic Interpretive Symbolic Interactionism). It is built on
phenomenological symbolic interactionism with hermeneutics as the basis for satisfying
the epistemological concerns of this research. The third part applies this 'ElS1' model
towards an understanding and interpretation of the problematic role of the statutory
audit and fraud detection from the viewpoint of the researcher as an auditor.
The conclusions forthcoming from this research are twofold. First, that the 'ElS1'
model is a general qualitative model for the epistemological concerns here but not the
only approach which could fulfil such a claim. Second, the empirical findings indicate
that the role of the statutory auditor towards fraud detection is more implicit than
explicit. It exposed the defining paradox of contemporary legal culture that its ideology
is one of consensus and clarity.
Overall, this research has provided additive contributions in the form of new or
improved methodology, evidence, analysis and concepts.