PCAOB report on auditors' responsibilities for fraud detection
23 Jan 2007
The US Public Company Accounting Oversight Board (PCAOB) has published a report of its Observations on Auditors' Implementation of PCAOB Standards Relating to Auditors' Responsibilities with Respect to Fraud.
Based on the findings of PCAOB inspections of audit firms, the report discusses aspects of procedures relevant to an auditor's consideration of fraud. The discussion is organised around the following topics:
- Auditor's Overall Approach to the Detection of Financial Fraud
- Brainstorming Sessions and Fraud-Related Inquiries
- Auditor's Response to Fraud Risk Factors
- Financial Statement Misstatements
- Risk of Management Override of Controls
- Other Areas to Improve Fraud Detection
