Sas 99 Report
The new fraud standard, Statement on Auditing Standards no. 99, Consideration of Fraud in a Financial Statement Audit, is the cornerstone of the AICPA’s comprehensive antifraud and corporate responsibility program. The goal of the program is to rebuild the confidence of investors in our capital markets and reestablish audited financial statements as a clear picture window into corporate America. SAS No. 99 requires you to gather and consider a great deal of information to assess fraud risks. SAS 99 defines fraud as an intentional act that results in a material misstatement in financial statements. An audit requires due professional care, which in turn requires that the auditor exercise professional skepticism.
Requires ‘brainstorming’ sessions to discuss how and where the entity’s financial statements might be susceptible to material …show more content…
* Considering fraud risk factors. * Considering certain other information
SAS 99 requires auditors to ask management questions and make a decision as to whether they need to ‘educate’ management about fraud and the types of controls. The standard also requires auditors to make inquiries of the audit committee, internal audit personnel and others within the entity.
Requires the auditor to use the information gathered to identify risks that may result in a material misstatement. provides guidance and support on how to identify and assess risks. It challenges auditors to change the way they think about assessing fraud risks. Auditors should identify risks and synthesize how those risks could lead to a material misstatement. This section specifically requires that improper revenue recognition and management override of controls be considered.
Requires the auditor to evaluate the entity’s programs and controls that address the identified risks of material
Requires ‘brainstorming’ sessions to discuss how and where the entity’s financial statements might be susceptible to material …show more content…
* Considering fraud risk factors. * Considering certain other information
SAS 99 requires auditors to ask management questions and make a decision as to whether they need to ‘educate’ management about fraud and the types of controls. The standard also requires auditors to make inquiries of the audit committee, internal audit personnel and others within the entity.
Requires the auditor to use the information gathered to identify risks that may result in a material misstatement. provides guidance and support on how to identify and assess risks. It challenges auditors to change the way they think about assessing fraud risks. Auditors should identify risks and synthesize how those risks could lead to a material misstatement. This section specifically requires that improper revenue recognition and management override of controls be considered.
Requires the auditor to evaluate the entity’s programs and controls that address the identified risks of material