AICPA launches assault on fraud. .This month the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). 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 (ASB ASB Asbestos ASB Arbeiter Samariter Bund (German medical help organisation) ASB Anti-Social Behaviour ASB Accounting Standards Board (UK FRC) ASB Aarhus School of Business ) took a major step forward in the fight against fraud by releasing Statement on Auditing Standards (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. ) 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 misappropriation n. the intentional, illegal use of the property or funds of another person for one's own use or other unauthorized purpose, particularly by a public official, a trustee of a trust, an executor or administrator of a dead person's estate, or by any 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 mis·state tr.v. mis·stat·ed, mis·stat·ing, mis·states To state wrongly or falsely. mis·state  ment n. . SAS no. 99 also advises auditors to collaborate with forensic specialists in planning the audit, designing audit tests likely to detect fraud and structuring scripts for questioning personnel. The SAS can be obtained from the AICPA at 888-777-7077. Another part of the Institute's antifraud campaign involves its establishment--in conjunction with the University of Texas at Austin “University of Texas” redirects here. For other system schools, see University of Texas System. The University of Texas at Austin (often referred to as The University of Texas, UT Austin, UT, or Texas and the Association of Certified Fraud Examiners--of an Institute for Fraud Studies, which will provide investors with practical advice on how to recognize and protect themselves from fraud. In addition, the AICPA is designing--and in June will issue--antifraud criteria and controls for public companies. It also urges stock exchanges to mandate antifraud training for corporate managers, boards of directors and audit committees. And it is initiating discussions with the American Accounting Association, the Federation of Schools of Accountancy and other educational groups to incorporate antifraud instruction into courses and textbooks. |
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