CAQ Alert: Illegal Acts: The External Auditor’s Responsibilities
Jul 26, 2021
On July 26, 2021, the Center for Audit Quality (CAQ) released a resource, "Illegal Acts: The External Auditor’s Responsibilities", to educate users of financial statements on the auditor’s responsibilities in regards to illegal acts under PCAOB auditing standards and how they differ from the auditor’s responsibilities as it relates to fraud.
Recent global corporate fraud scandals such as those related to Wirecard in Germany and Carillion in the United Kingdom have driven a focus by capital market participants on the auditor’s role in identifying and detecting fraud. Certain audit regulators, including the International Auditing and Assurance Standards Board (IAASB) and the Public Company Accounting Oversight Board (PCAOB) have taken action with respect to fraud.
The publication provides an overview of the external auditor's responsibilities with respect to illegal acts and how they differ from fraud, outlining key differences and providing illustrative examples of each.
Review the publication on the CAQ's website.
