NCJ Number
53217
Date Published
1978
Length
107 pages
Annotation
EXISTING CONTROLS ON THE AUDITS AND AUDITORS OF SWEDISH FINANCIAL AND INSURANCE ENTERPRISES ARE DESCRIBED AND RECOMMENDATIONS ARE OUTLINED FOR STRENGTHENING THE CONTROLS AND PREVENTING CRIME.
Abstract
SWEDISH LAW REQUIRES REGULAR AUDITS OF CORPORATIONS BY AUDITORS OUTSIDE THE ORGANIZATION. THESE AUDITORS MUST MEET THE REQUIREMENTS OF AGE, CITIZENSHIP, AND EXPERIENCE. A COMPANY WHOSE COMBINED ASSETS ARE EQUAL TO AT LEAST 1 MILLION CROWNS CAN BE AUDITED BY A TEAM, BUT ONE MEMBER OF THE TEAM MUST BE AUTHORIZED OR BE RECOGNIZED BY ONE OF SWEDEN'S OFFICIAL AUDITORS' ASSOCIATIONS OR UNIONS. THE GOVERNMENT TEAM AUTHORIZED TO INVESTIGATE THE WORK DONE BY AUDITORS AND MAKE RECOMMENDATIONS FOR REGULATING AUDITS AND AUDITORS HAS OBSERVED THAT AUDITORS HAVE THE OPPORTUNITY TO PARTICIPATE AND COLLABORATE IN WHITE COLLAR CRIMES. THE TEAM HAS PROPOSED THE FOLLOWING RECOMMENDATIONS FOR LEGISLATION: (1) CORPORATIONS SHALL BE REQUIRED TO REGISTER BASIC INFORMATION ABOUT THE AUDITORS THEY EMPLOY FOR EXTERNAL AUDITS, (2) LEGISLATION SHOULD BE ENACTED TO LIMIT THE USE OF THE TERM 'AUDIT' TO DESCRIBE THE FUNCTION OF PERSONS RECOGNIZED BY OFFICIAL AUDITOR ASSOCIATIONS AND UNIONS OR AUTHORIZED AUDITORS, AND (3) GUIDELINES SHOULD BE FORMULATED WHICH SPECIFY AUDITORS' OATH OF SECRECY AND DUTY TO INFORM. THE TEAM ALSO SUGGESTS THAT QUALIFIED AUDITORS BE RETAINED IN ALL CORPORATIONS, FINANCIAL SUPPORT BE GIVEN TO COMMERCIAL STAFFS TO SUPERVISE AUDITING FUNCTIONS, AND AUDITING ASSOCIATIONS DRAW UP THEIR ETHICAL REGULATIONS WITH EMPHASIS ON THE AUDITORS DUTY TO SOCIETY, SHAREHOLDERS, CORPORATION CREDITORS, AND EMPLOYEES OF THE CORPORATION. EXISTING STATUTES GOVERNING AUDITS AND AUDITORS ARE PRESENTED ALONG WITH THE SPECIFIC RECOMMENDATIONS FOR LEGISLATION. (DAG) --IN SWEDISH.