Academic journal article Journal of Accountancy

AICPA Launches Assault on Fraud.

Academic journal article Journal of Accountancy

AICPA Launches Assault on Fraud.

Article excerpt

This month the AICPA auditing standards board (ASB) took a major step forward in the fight against fraud by releasing Statement on Auditing Standards (SAS) no. 99, Consideration of Fraud in a Financial Statement Audit, superseding SAS no. 82. The two statements bear the same title, but SAS no. 99 provides more comprehensive guidance--in terms of proactive fraud prevention and deterrence--than its predecessor did. Part of a broad AICPA antifraud initiative, the new statement encourages auditors to be more alert to indications and underlying methods of various types of deception, such as fraudulent financial reporting and misappropriation of assets.

While SAS no. 99 is effective for audits of periods beginning on or after December 15, 2002, the ASB recommends that--in recognition of the urgent need for an improved response to fraud--auditors implement certain of its provisions in time for upcoming yearend audits. For example the statement requires audit team members to discuss the risk and potential means--such as management's overriding of antifraud controls--by which fraud could lead to material misstatement. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.