ABSTRACT
The scope of discussion in regard to fraud and misfeasance will be confined to public and private limited companies, public institutions and corporations and government departments. The assets, including cash and investments of a company or a corporation or a government department are held and used by the management in the nature of a trust. In the opinion of the public and many authorities on accountancy and mercantile jurisprudence, the principal responsibility of auditor is to protect the organisation's assets from fraudulent manoeuvres. A fraud against a company or a corporation or a government department may be committed in terms of its assets, bank balance, investments, liquid cash, purchases, wages and even stock-in-trade. Fraud is a phenomenon which an auditor is to guard against as the watchdog of the shareholders or the taxpayers. The language of the judgment leaves no ambiguity about the extent of responsibility the court would like the auditor to shoulder.
