AICPA issues new audit standard for detecting fraud. (New Fraud Standards).The AICPA's Auditing Standards Board In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public announced that it has approved a new standard: Statement on Auditing Standards 99, Consideration of Fraud in a Financial standard gives auditors expanded guidance for detecting material fraud. 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 supersedes the Auditing Standards Board's earlier fraud standard, SAS 82, which had the same title. SAS 99's key provisions are: * Increased emphasis on professional skepticism; * Discussions with management; * Unpredictable audit tests; and * Responding to management override An arrangement whereby commissions are made by sales managers based upon the sales made by their subordinate sales representatives. A term found in an agreement between a real estate agent and a property owner whereby the agent keeps the right to receive a commission for the sale of of controls. "As part of our continuous improvement process, we commissioned a number of independent academic research projects to help us understand how SAS 82 could be improved," said Chuck Landes, AICPA AICPA See American Institute of Certified Public Accountants (AICPA). director, Audit and Attest To solemnly declare verbally or in writing that a particular document or testimony about an event is a true and accurate representation of the facts; to bear witness to. To formally certify by a signature that the signer has been present at the execution of a particular writing so as Standards. "SAS 99 is responsive to that research and incorporates recommendations from the Public Oversight Board's Panel on Audit Effectiveness." SAS 99 is effective for audits of financial statements for periods beginning on or after Dec. 15. The AICPA, however, urges firms, particularly those that audit public companies, to begin earlier implementation. For more information call CalCPA's Accounting and Auditing Hotline: (800) 9225272, ext. 2355. |
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