The Exposure Draft, Proposed SAS The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, proposes to supersede AU-C section 240, Consideration of Fraud in a Financial Statement Audit, in AICPA Professional Standards, and amend various other AU-C sections.
The ASB believes the proposed SAS will help auditors perform appropriate audit procedures when fraud or suspected fraud is identified in an audit of financial statements and will drive auditors to better exercise professional judgment and maintain professional skepticism in planning and performing their audits with respect to identifying, assessing, and responding to risks of material misstatement due to fraud, thereby improving audit quality.
The proposed SAS would become effective for audits of financial statements for periods ending on or after December 15, 2028. The comment period ends October 3.