Responsibles of auditorsfor detecting financial statement fraud

Fraud is intentional deception to secure unfair or unlawful gain which causes significant damage to investors. Independent auditors play an important role in enhancing the quality of financial statements in order to protect investors. Independent auditors are responsible for detecting financial statement fraud. This paper is to discuss the responsibilities of independent auditors for detecting financial statement fraud, distinguish between fraud and error, and propose solutions to help auditors perform their fraud detection responsibilities well.