Comment: Auditor’s responsibilities related to fraud

In our letter responding to the AICPA Auditing Standards Board’s proposed standard, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, we believe it is in the public’s best interest to modernize the existing guidance and to support careful consideration of converging this standard with the International Auditing and Assurance Standards Board’s ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. We believe the proposed guidance clarifies the auditor’s responsibilities related to fraud and recognize that many of the proposed revisions memorialize procedures that auditors are already performing today.

However, we also express concern about the overall length of the proposed standard and the related risk that it is overly prescriptive. Additionally, we have concerns about the geography of the risk assessment requirements and how the auditor’s responsibilities related to third-party fraud will be operationalized.

Download our letter to read our comments in full.