NCJ Number
174285
Journal
White Paper Volume: 12 Issue: 5 Dated: September/October 1998 Pages: 27-29-39
Date Published
1998
Length
5 pages
Annotation
In 1996, the Auditing Standards Board, the senior technical body of the American Institute of Certified Public Accountants, issued Statement of Auditing Standards (SAS) 82, Consideration of Fraud in a Financial Statement Audit, to provide guidance on how to conduct a fraud examination.
Abstract
The statement affects all financial statement audits performed on or after December 15, 1997. Key elements of SAS 82 ar a description of fraud and its characteristics, an assessment of the probability of fraud based on the risk of material misstatements, categories of fraud risk factors to be considered, an evaluation of and response to initial audit test results, a description of related documentation requirements, and guidance on communicating suspected fraud to the appropriate officials. A thorough review of SAS 82 and other related accounting standards can be beneficial to fraud examiners by providing guidance on how to approach fraud, generating ideas for specific audit assignments, and limiting potential legal exposure.