How can an Auditor Prevent and Detect White-Collar Crime? A Convenience Theory Approach

Abstract

White-collar crime has risen dramatically over the last decades and is only expected to become more frequent. Not until recently has white-collar crime become a recognized and widely discussed problem. With the emergence of Norway as one of the world’s richest nations and increasing pressure from international markets, demands and expectations, white-collar crime has become a widely discussed and recognized problem. White-collar crime is harder to ‘see’ than other crimes as it is more difficult to observe, it is also more difficult to detect and especially prevent. As the topic of white-collar crime receives abundant research, this thesis aims to add knowledge and understanding in how the external auditor prevents and detects white-collar crime and disturbs aspects of the convenience theory. This thesis will answer a few other research questions which will collectively answer the following question “How can an auditor prevent and detect white-collar crime? A convenience theory approach”: 1. What is the responsibility of an auditor in the prevention and detection of White-Collar Crime? 2. How can an auditor prevent and detect white-collar crime? 3. How can an auditor remove motive, opportunity, and willingness to commit white-collar crime? By reviewing existing research literature and conducting interviews with several highly experienced employees and experts across 5 different industries and roles, this thesis will highlight specific measures believed to be answers to the research question. Main findings include 11 specific requirements and actions that disturb 6 aspects of crime convenience. Some of these are: maintaining professional skepticism, requiring sufficient client funding, spending enough time during the audit, understanding the client business, ignoring the potential superstar CEO, and working with the board of directors. The topic of audit team rotation, or turnover, is further discussed as the results of existing resear