News in brief: ACCA calls for change

The proposals, which go much further than existing legislation in the US and proposals being considered by the European Commission, would require firms to disclose fees paid for tax work, restructuring, acquisitions and disposals, financial information systems design and other assurance work.

The Auditing Standards Board at the American Institute of Certified Public Accountants has produced the draft of a proposed statement on auditing standards (SAS) titled consideration of fraud in a financial statement audit. Under the new standard the auditor is responsible for the detection of ‘material misstatements’ caused by fraud but is not directly responsible for the actual detection of ‘fraudulent activity’. The draft describes two types of fraud that may result in financial statement misstatements, fraudulent financial reporting and misappropriation of assets.

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