Statement on Auditing Standards (SAS) 99, Consideration of Fraud in a Financial Statement Audit, compels auditors to obtain “reasonable” assurance that material fraud is not present. The Statement contains additional terms such as “professional skepticism,” “brainstorming,” and others that are suggestive but not defined. More problematic is the suggestion that auditors deploy “forensic” procedures and specialists in each audit. Such procedures are, unfortunately, not presented. Consequently, auditors’ exposure grows each time they attempt to comply with SAS 99.
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