Less time on manual work and more time on high-value tasks? That’s the dream for most modern accounting teams. Learn how RightRev’s automated revenue recognition can help your team achieve it.
AICPA is taking another step toward tweaking auditors’ responsibilities related to fraud.
The group recently published a draft statement on auditing standards (SAS) titled The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. AICPA is seeking industry feedback through Oct. 3. The proposed SAS is slated to take effect for audited periods ending on or after Dec. 15, 2028.
One of the most significant changes is that the proposed SAS would “clarify the auditor’s response when fraud or suspected fraud is identified in an audit of financial statements,” according to a news release. Another new requirement would stress “the importance of remaining alert throughout the audit for information that is indicative of fraud or suspected fraud.”
“This exposure draft doesn’t alter the overall objectives of the auditor when fraud or suspected fraud is identified,” Jennifer Burns, the AICPA’s chief auditor, said in the release. “What it does is strengthen and clarify the auditor’s specific role in these circumstances. Management, those charged with governance and auditors all have important responsibilities, and when everyone diligently executes those responsibilities, an organization is best positioned to identify fraud.”