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Notice of the AICPA Auditing Standards Board’s Upcoming Request for Research Proposals for an Assessment of the Effectiveness of SAS No. 82, Consideration of Fraud in a Financial Statement Audit The AICPA is committed to evaluating how well SAS No. 82, Consideration of Fraud in a Financial Statement Audit, is meeting the Auditing Standards Board’s (ASB’s) objectives. This commitment was established in the exposure draft of SAS No. 82, issued in May 1996, whereby the ASB noted that it will “develop a process to obtain feedback on the new standard periodically to assess how well it is accomplishing its objectives and to identify further steps that need to be taken. This feedback process should be helpful in defining further research on fraud deterrence and detection.” Accordingly, the AICPA is in the process of developing a Request for Proposal that will be designed to stimulate research on the effects of SAS No. 82 on audit practice, including evidence about the improved effectiveness of an audit of financial statements in detecting material misstatements due to fraud. The AICPA expects to have the support of several auditing firms who are willing to provide access to firm data and personnel for the selected research project(s). All types of research methodologies are acceptable (i.e., archival, behavioral, experimental, theoretical, analytical, etc.). The ASB seeks to have the research completed and preliminary results summarized for their consideration by early part of the year 2000. Members of the AAA’s Auditing Section will be mailed a copy of the Request for Proposal once completed by the AICPA, which is expected to occur by early November. The AICPA’s anticipated deadline for proposal submissions is February 1, 1999. Also, watch for posting of the Request for Proposal on the AAA’s and AICPA’s respective homepages by early November 1998. |