6. Auditors are supposed to “sniff out” fraud. How can being an effective leader help in this regard?
Effective leader help in this regard by:-
1. He will bring experience in the audit team. New and young auditors are ineffective in finding the effective questions which can bring out the information about fraud. With mentoring they will be able to identify the differences between authentic and fake audit evidence and can find the leads towards the fraud.
2. Develop an effective audit plan:- If the leader is effective then he will make a sound audit plan which will holistically cover all the avenues of audit and leave no stone untouched.
3. New techniques like the element of surprise etc can be implemented by a leader which will make audit dynamic and therefore, clients will always be at their toes.
4. Audit staff needs constant motivation and knowledge upgrade, which an effective leader can do very easily.