possible future role of auditors in reporting F& E

Essentially, if the scope of audit was extended to specifically looking for fraud or reporting on fraud – but this isn’t going to happen (there’s nothing pending in ISAs to suggest that professional responsibility would be extended in this way). It’s something that often gets talked about – usually after a major fraud isn’t detected and the company collapses (“where were the auditors?” cries the media). But that would be fraught with obstacles – how would it be mandated? (statute? for all companies? only public companies?) – who would pay for it? (ultimately the shareholders) – how do you equip the profession to take on this role? what are the alternatives? I suggest alternative is actually through corporate governance – and fraud detection is role of internal – not external – auditor. That’s some ideas.