Fraud and corruption can have extremely negative consequences on any impacted organization. Despite these damaging implications, it can be challenging for auditors and audit committees to identify fraud. Corporate directors also often find it a challenge to ask the right questions and focus in the right areas to do their due diligence to identify fraud.
CPAB is exploring how well auditors are complying with auditing and ethical standards requirements to detect and respond to fraud. Our discussions with investors, forensic specialists, standard setters, other regulators and audit firms will help us better understand investor expectations and good practices. We released our report on our fraud thematic review in early 2020.