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Comment Letter - AICPA’s proposal on the auditor’s responsibilities relating to fraud in an audit of financial statements

Overview

In our comment letter, we support the efforts of the Auditing standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) to enhance and clarify the auditor’s responsibilities related to fraud in an audit of financial statements. While we broadly agree the proposal would align appropriately with other standards and requirements, we suggest the ASB clarify the auditor’s responsibilities related to third-party fraud risks and remove cybercrime as an example of third-party fraud arising from unknown parties. We also suggest the ASB consider a principles-based approach to the proposed requirement to obtain audit evidence of the completeness of the population of journal entries, along with other clarifications.

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