SEC Acting Chief Accountant Releases Statement on the Auditor’s Responsibility for Fraud Detection

On October 11, 2022, SEC Acting Chief Accountant Paul Munter issued a statement on the importance of fraud detection during audits of financial statements. Topics addressed by Mr. Munter in the statement include:

• The auditor’s responsibilities related to fraud risks.
• Observations related to auditor “shortcomings.”
• The importance of the PCAOB’s quality control standards.
• Risk assessment and responses.