"The detection of material fraud is a reasonable expectation of users of audited financial statements. Society needs and expects assurance that financial information has not been material misstated because of fraud. Unless an independent audit can provide this assurance, it has little if any value to society"
This statement by the Public Companies Accounting Oversight Board represents a dramatic change in auditors' responsibility for detecting fraudulent financial reporting
Previously, AICPA auditing standards required auditors to plan and perform an audit to provide reasonable assurance of detecting material misstatements, including those caused by fraud
Today, the message is clear: auditors must assume greater responsibility for detecting fraud