Auditor is Watchdog, not a Blood Hound

The word Audit is derived from the Latin word ‘Audire’ which means to hear. When any person starts the business then various transactions which are related to cash and bank arises in the business. At the time of making the accountancy then auditing is appointed to check the accounts. It is the responsibility to find true and fair value of the business.

“In most audits, fraud risk will be one of several risks that are evaluated as part of the business processes under audit. If fraud is suspected, the internal auditor may be asked to perform a forensic audit specifically to detect fraud,” he says. “Under today’s investor confidence legislation, such as Sarbanes-Oxley and Ontario Bill 198, management must have a robust anti-fraud program to safeguard assets and minimize the risk of fraudulent financial reporting.
Auditor is Watchdog, not a Blood Hound
Case: Kingston cotton mills company (1986)
“An auditor is not bound to be detective and to work with their suspicion, that there is something wrong. He is a watchdog not a blood hound. He is justified in believing tried servant of the company and is entitled to rely upon their representation provides he takes reasonable care”

Auditor is Watchdog, not a Blood Hound it means as the dog always think about the owner as it the same way an auditor always think about the owner of the company. It is the responsibility to find true and fair value of the business and gives all the details (errors and frauds) of all the business. But this task is so difficult because people tried who arise fraud in the company gives wrong information to the company.


Duty of the auditor is not harm to the other person. He is always sincere, systematic, honest, truthful, and tactful. An auditor has a professional knowledge and expert in own field. In case of any unwanted situation. The remedial action has to come from the owner of the entity. He has to discharge his responsibility by informing about the irregularity found in the audit.