Title: The Auditor's Role in Preventing Financial Crime

Authors: Alfred Sigvardsson & Malte Nordborg

Supervisor: Urban Österlund

Background: The text provides a historical perspective on auditing and accounting from the late 1800s to the present, highlighting the professionalization of the auditing profession in Sweden. It emphasizes the founding of the Swedish Auditors Association and the introduction of independence requirements for auditors during the 20th century. Key legislative changes and the roles of organizations, such as FAR's role in developing generally accepted accounting principles and the introduction and abolition of mandatory audits for small companies, are also discussed. The problem focuses on the scope and consequences of financial crime for society, stressing the auditor's central role in detecting and combating this phenomenon. Challenges related to the increased globalization and digitalization of financial crime are discussed, as well as potential discrepancies between societal expectations of auditors and their own perceptions of their role. Overall, the auditor's important role in ensuring transparency, trust, and fairness within companies and society by identifying and reporting suspected financial crimes is highlighted.

Purpose: The purpose of this work is to investigate how auditors work to detect financial crime. This includes analyzing the auditor's cooperation with stakeholders and evaluating the effectiveness of the tools used in their work.

Method: The study employs a qualitative research method based on interviews with auditors, the Swedish Economic Crime Authority (EBM), and the Swedish Association of Authorised Public Accountants (FAR). The researchers use an abductive approach that combines inductive and deductive methods. A selective sampling of interview subjects was made. Information in the study was gathered from both primary sources, such as interviews, and secondary sources, such as literature and electronic resources.

Conclusion: The study's findings emphasize that the auditor's work in detecting financial crime requires a combination of digital tools, professional skepticism, and strong collaborations with other actors. Despite digitalization improving the ability to detect crimes, continuous development and education are needed to keep pace with criminals' methods. By increasing cooperation between auditors, authorities, and other stakeholders, auditing can continue to play a central role in combating financial crime and promoting a fair and transparent economy.