The Does SAS 99 Require CPAs to Detect Fraud?

Source: The CPA Journal

Does SAS 99 place a greater burden on CPAs to detect fraud, or does it merely attempt to persuade the public that accountants are increasing their efforts to detect fraud? This question was part of a survey of members of the Wisconsin Institute of CPAs. The results showed respondents believe SAS 99 will have an impact on CPAs who will face a higher standard in court cases and will probably be involved in more litigation on fraud matters. The article suggests that CPAs should avoid creating high expectations by users of financial statements that fraud will be detected.

Respondents also said there has been increased communication with audit committees and “more tension in interactions with the client’s personnel.”

The respondents don’t believe SAS 99 will have a significant impact on the effectiveness of audits.

From The CPA Journal, June 2005. For the complete article, click on the following link: http://www.nysscpa.org/cpajournal/2005/605/essentials/p38.htm.