Abstract In the present business environment, financial frauds have become a major concern for organizations, stakeholders, and regulatory authorities. Auditing plays a vital role in ensuring the reliability of financial statements and in detecting fraudulent activities. Auditing generally takes place after the occurrence of fraud; however, its role is not limited to detection alone. Auditing also helps in preventing future frauds, as the very presence of an audit system discourages attempts to commit fraudulent activities. Effective auditing is possible when it is supported by prescribed audit procedures, professional judgment, and ethical awareness of auditors. This study aims to examine the role of auditing in detecting and preventing frauds in business organizations. The study is based on secondary data collected from journals, books, auditing standards, and reports.it highlights how auditing strengthens internal discipline and enhances stakeholders’ confidence. The study also discusses the challenges faced by auditors during the audit process and emphasizes the need for integrating human judgment with technology to improve fraud detection. The study concludes that auditing plays a vital role in addressing modern fraud risks.
Kadalagi et al. (Sat,) studied this question.