Records of financial statement fraud control responsibilities

The current research examines fraud in financial statements and evaluates the history of fraud in international societies. Fraud in financial statements occurs when internal controls are either absent or weak. In addition to these reasons, this research differentiates between two major types of fraud in financial statements: a) managers commit this fraud and b) middle managers commit this in order to increase their rewards. This research discusses the responsibilities of financial statement fraud control by looking at agency theory, shareholder theory, public interest theory, and also briefly explains the auditing perspective regarding fraud. This discussion is accompanied by the main review of internal control strategies in relation to the control of financial statement fraud, and as you know, internal controls are in line with corporate governance and the main component of that is audit. The output of this paper provides a comprehensive understanding of financial statement fraud control responsibilities within the framework of the above theories and finally provides recommendations for improving financial statement fraud control in public interest entities. The above article is about familiarity with fraud in financial statements and basic accounting theories in which fraud is reflected. The article is written in a library style and according to previous researches in this regard and only develops the above content.

Keywords:

Fraud in financial statements , agency theory , shareholder theory , public interest theory