ACFE Conference Highlight: PCAOB's Director Urges Auditors to Do More to Find Fraud.LAS VEGAS -- An influential leader in fight against fraud, Douglas Carmichael, Ph.D., CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , CFE, Chief Auditor and Director of Professional Standards for the Public Company Accounting Oversight Board The Public Company Accounting Oversight Board (or PCAOB) (sometimes called "Peekaboo") is a private-sector, non-profit corporation created by the Sarbanes-Oxley Act, a 2002 United States federal law, to oversee the auditors of public companies. , gave new insight into expectations of auditors yesterday to 1,600 attendees at the 15th Annual Fraud Conference of the Association of Certified Fraud Examiners Established in 1988 the Association of Certified Fraud Examiners is the professional organization that governs professional fraud examiners. Its activities include producing fraud information, tools and training. . Carmichael discussed how new auditing standards can help auditors to detect more fraud. But he expressed concern that some auditors are still too oriented towards risk assessment when the real focus should be on detecting fraud. He urged auditors to ask themselves, "Do my audit procedures have some chance of detecting the fraud?" "If not," he said, "you will not find the fraud and you are certainly not going to comply with (auditing standard) SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. 99." Carmichael subsequently clarified his use of "some chance," indicating that for large frauds, it should be "probable" that the fraud would be detected by audit procedures. According to ACFE ACFE Association of Certified Fraud Examiners ACFE Adult, Community and Further Education (Department of Education, Victoria, Australia) ACFE American College of Forensic Examiners President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Toby J.F. Bishop, CFE, CPA, FCA FCA Abbreviation for the Free Carrier , Carmichael's comment will increase auditors' concerns that the PCAOB's expectations for fraud detection may be higher than auditors can deliver in the short-term. "Auditors are willing to do more work to detect fraud," Bishop said, "but to achieve the PCAOB's expectations they will need significantly more anti-fraud education and ongoing training. It won't happen overnight." About the ACFE The ACFE, the world's premier provider of anti-fraud training and education, has over 30,000 members, sponsors more than 103 chapters worldwide and provides anti-fraud educational materials to over 100 universities. Certified Fraud Examiners (CFEs) on six continents have investigated more than 1 million suspected cases of civil and criminal fraud. Identified as "the premier financial sleuthing organization" by The Wall Street Journal, the ACFE has captured national and international media attention. For more information about the ACFE, visit www.CFEnet.com. Editor's Note: For more information about the ACFE's conference, including photos and transcripts from keynote speakers, visit www.fraudconference.com and www.CFEnet.com. |
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