ASB approves standard on auditors’ responsibilities relating to fraud

The AICPA Auditing Standards Board has approved a new standard that enhances and clarifies auditor responsibilities for identifying fraud or suspected fraud in a financial statement audit.

Statement on Auditing Standards (SAS) No. 151, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, strengthens audit procedures related to fraud while reinforcing that management and those responsible for governance of an entity remain primarily responsible for preventing and detecting fraud.

The new standard adds more specific requirements designed to improve auditor skepticism, fraud risk assessment, documentation, communication and responses when fraud is identified or suspected. Learn more.