PCAOB Releases Spotlight Publication on Auditor’s Responsibilities Related to Dealing With Illegal Acts

The PCAOB has released a spotlight publication to remind auditors of their responsibilities to detect, evaluate, and appropriately communicate (e.g., to management, the audit committee, the SEC) a company’s illegal acts. Such responsibilities “inform the auditor’s obligation to plan and perform the audit to obtain reasonable assurance that the company’s financial statements are free of material misstatement, whether due to error or fraud.”