Can an auditor ever be a first responder to financial frauds?

A first responder to a crisis acts by stabilizing the situation and preventing further losses to victims. The purpose of this paper is to explore the issue of whether auditors can act as first responders to a financial fraud.

This paper reviews Securities and Exchange (SEC) regulations and auditing practice pronouncements to identify the role of digital evidence in those statements.

Auditors will act as first responders if such a role is required in SEC regulations or under the auditors' professional practice guidelines. Recent SEC regulations and practice guidelines are reviewed to determine if any such role exists. The effectiveness of a first responder to financial frauds is dependent on the tools they use to evaluate the crisis.

In order for auditors to act effectively, they must carefully take into consideration fraudulent digital documents.