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Some recent business failures have caused the public to question whether auditors: (1) Have assumed sufficient responsibility to detect and report possible irregularities; (2) Have been sufficiently effective in detecting material errors and irregularities. The Auditing Standards Board is issuing this proposed statement on auditing standards to better serve the public interest by: (1) Expanding the auditor's responsibility to detect and report irregularities and (2) Improving the auditor's ability to detect material errors and irregularities (a) by discussing client characteristics that may increase the risk of material errors and irregularities and heighten professional skepticism concerning them and (b) by indicationg how auditors might respond to those characteristics in planning and performing audit procedures and evaluating results.
Auditors -- Professional ethics -- Standards -- United States; Fraud
Accounting | Taxation
American Institute of Certified Public Accountants. Auditing Standards Board, "Proposed statement on auditing standards : the auditor's responsibility to detect and report errors and irregularities ;Auditor's responsibility to detect and report errors and irregularities" (1987). Statements of Position. 502.