Every company – no matter its organizational form, size and line of work – is exposed to a risk of fraudulent financial reporting. Consequential to many corporate scandals which have occurred in the last couple of years, more and more attention is being credited to the role of auditor-s responsibilities in detecting fraud. Given the fact that financial reports are the main source of information of a company, and the consequences of providing false information severe, the goal is to reduce fraudulent financial reporting to as low of a level as possible in order to save the investors', creditors' and other outside users' trust. In accordance, detecting fraudulent behavior is one of the revisors' responsibilities which relies on the management's honesty during the creation of financial reports. Due to all of this, a significant role in fraud discovery is credited to managers, with the importance of revisor – corporate management relationship transparency being highlighted. To clearly define the role of the revisor in detecting fraudulent financial reporting, there are numerous standards which state the responsibilities of the revisor, and the goal of this thesis is to review audit actions in cases where there is doubt of alleged fraudulent behavior.