Auditing Fraud

An audit is any review and assessment of an individual’s or group’s performance. In a corporate or bureaucratic setting, this process can be carried out either within the institution itself (an internal audit) or by a private firm that brings a more objective stance to the matter (external audit).

The auditing process, which involves going over financial records, behavioral patterns, and other relevant data, generally roots out problems of inefficiency. It also exists to uncover potential immoral or illegal activities going on within the cooperation. These activities would then be reported either to the appropriate person or people within the corporation, or to authorities.

However, supposedly unbiased external auditing firms have occasionally been known to have been “in” on the illegal practices of the companies or people they are reviewing, agreeing to essentially turn a blind eye for profit. Probably the most famous example of this would be the case of Enron, in which the accounting and auditing firm Arthur Anderson was implicated in covering up major fraud within the energy giant.

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Auditing fraud has become one of the most prominent “white-collar” crimes in the nation, and with good reason. The Enron scandal resulted in the downfall of one of the largest companies in the U.S. and the loss of over 85,000 jobs.

Consequences such as these are why the federal government takes auditing fraud and malpractice very seriously. If you or someone you know has been implicated in a case of auditing fraud or a similar offense, contact experienced Austin criminal defense lawyer Ian Inglis today by calling 800-589-1808.