Fraud Detection and Prevention: A Review of the Latest Developments in U.K. Audit

Proposed reforms to U.K. audit are reviewed from a fraud detection and prevention perspective. A holistic four-actor model that encompasses: the directors, auditor, shareholders, regulator, is used frame discussion. Focus drawn mediating role of Audit Assurance Policy. The paper argues proposed have some potential reduce expectations gap. However, problem agency costs advisory nature shareholder voting on Policy significantly limit possible effectiveness Suggestions for future research made.