Aicpa Statements On Auditing Standards - 1351 Words

AICPA Statements on Auditing Standards The government and accounting professionals have been focusing on accounting policy and procedures since the Enron, WorldCom, and Tyco financial scandals occurred. These financial scandals occurred by company executives and public accounting companies who failed to disclose and account for the known fraud (Casabona Grego, 2003, p. 16). Due to these financial accounting scandals the Auditing Standards Board (ASB) of the AICPA established Statement on Auditing Standards (SAS), in addition to the requirements made by SOX and the PCAOB, to hold companies and auditors accountable for financial statement reporting (p. 16). According to Casabona and Grego (2003), in 1997, the ABS established SAS No. 82, Consideration of Fraud in a Financial Statement Audit (p. 16). SAS No. 82 provided companies with policies and procedures on the review of material fraud in a financial statement audit (p. 16). SAS No. 82 was in effect until 2000, when the ASB, AIC PA’s Fraud Task Force, and the Panel on Audit Effectiveness selected by the PCAOB, determined changes and alterations to the SAS needed to be made based on research, recommendations from other accounting professional groups, and recommendations from financial reporting shareholders (p. 16). Therefore, SAS No. 99 was established in place of SAS No. 82, keeping the same title, Consideration of Fraud in a Financial Statement Audit (p. 16). SAS No. 99 as noted by Casabona and Grego heightens theShow MoreRelatedQuestions On Public Accounting Firms Essay841 Words   |  4 PagesAuditing Assignment 1-20 Public accounting firms are sometimes grouped into categories of local firms, regional firms, national firms, and international firms. Explain briefly the characteristics of each. Include in your answer the types of services stressed in each group. Local accounting firms are owned and managed by one or two CPAs. 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They insisted the employees use aggressive and illegal accounting procedures. b) Anderson was also responsible because they allowed Enron to use these fraudulent statements for 15 years. It is the auditor’s responsibility to question any unusual circumstances and reports and they failed to do so. They should have questioned the SPEs, should have noticed that notes receivable were reported wrong, and should have noticed