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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Kyle Brasseur2022-10-12T19:50:00
The Securities and Exchange Commission (SEC) believes auditors play a pivotal role with respect to fraud detection. Those auditors that tell stakeholders otherwise could draw the ire of the agency in its future enforcement efforts.
Paul Munter, acting chief accountant at the SEC, issued a statement Tuesday highlighting auditors’ responsibilities in fighting fraud, including his office’s recent observations of shortcomings in the area. Among the deficiencies he noted was auditors framing discussions of their responsibilities related to fraud by describing what they are not required to do instead of what they can provide—an approach Munter labeled as “particularly troubling.”
“We find this attitude of focusing on the limits of the auditor’s responsibilities at the outset as opposed to the affirmative requirements with respect to the responsibility to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether caused by error or fraud, deeply concerning, as it could impact an auditor’s mindset or their degree of professional skepticism and may thereby reduce the likelihood of fraud detection and potentially result in dereliction of professional responsibilities to the public trust,” he said.
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News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
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Our lowest price ($1 per day) for one year.
2023-08-30T13:43:00Z By Kyle Brasseur
Concerned auditors are missing the big picture when assessing a company’s internal control over financial reporting, the chief accountant at the Securities and Exchange Commission called on the profession—and company managers—to take a holistic approach to assessing risks.
2023-06-06T19:13:00Z By Kyle Brasseur
The Public Company Accounting Oversight Board proposed standard updates that would require auditors to enhance scrutiny toward potential instances of company noncompliance, including fraud, in their audit work.
2023-01-17T19:08:00Z By CW Staff
The Securities and Exchange Commission announced the promotion of Erik Gerding to lead its Division of Corporation Finance following the departure of Renee Jones.
2024-06-12T01:46:00Z By Kyle Brasseur
Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.
2024-06-03T17:35:00Z By Kyle Brasseur
Software company Autodesk said it won’t restate several years of financial statements following an audit committee investigation into potential accounting misconduct.
2024-05-24T16:27:00Z By Jeff Dale
Los Angeles-based bank holding company Broadway Financial Corp. disclosed in a public filing weaknesses discovered in its internal control over financial reporting because of training shortfalls.
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