SAS 99 is defined as the comprehensive antifraud and corporate responsibility program, in which is the cornerstone of the AICPA’s. The goal of the program is to rebuild the confidence of investors in our capital markets and reestablish audited financial statements as a clear picture window into corporate America. From providing CPAs with clarified and focused auditing guidance to establishing a new institute for fraud studies, the AICPA is determined to help reduce the incidence of financial fraud [ CITATION Ram03 \l 1033 ] SAS 99; “Consideration of fraud in a financial statement audit” make independent auditor to function in a way that the underlying frauds in the company could be discovered and in case found, it’s appropriate treatment in terms of reporting and qualifying. As for each initial evaluation completed by the partner, instances have been observed of voluntary inventory write downs, inappropriate treatment of the employee’s stock options. This makes the assignment more suspicious. In accordance with SAS 99, independent auditor requirements are to practice professional skepticism. The inherent risk and control risks seem to be very high. Independent auditor must properly examine and evaluate the records available for the presence of any material misstatements due to fraud[CITATION Placeholder1 \l 1033 ]. In a situation like this, auditor should independently, assess the identified risks after taking into account an evaluation of the entity’s programs and controls. He/she should critically deal with the results of the assessment. Auditor should consider the communication to be made about the fraud discovered to management, those charged with governance, regulatory authority, and statutory authority. Documentation of the auditor’s consideration of fraud should be very elaborative and vast. Auditor can also consider the last resort of withdrawal from the assignment and in this case, he/she should be reporting to the incoming audito
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