Yes, audits play a crucial role in detecting and preventing fraud within organizations. External auditors are trained to assess internal controls and identify potential red flags or irregularities in financial statements. Through their review of financial records, transactions, and supporting documentation, auditors can uncover discrepancies or patterns that may indicate fraudulent activities. Audits serve as a deterrent to fraudulent behavior and provide assurance to stakeholders that appropriate measures are in place to safeguard company assets.