Question

Name three things that SAS 99 (AU 240) requires an auditor to do with regard to finding fraud.

Answer 1

Every auditor should comply with SAS while performing his duties as an auditor, as required by SAS 99 auditor should perform the following 3 steps inorder to identify the fraud which are as follows,

1. Gather the information required to identify the risks of material misstatements of financial statements due to the involvement of any fraud,
2. Auditor then shall assess these risks after taking into account an evaluation of entity's programs and internal controls,
3. Then the auditor should respond to the results he concluded on the basis of above steps.

SAS 99 provides a wider scope for detecting the frauds and responding to the same than before.