Unformatted text preview: perform the audit to limit the audit risk by gathering sufficient and appropriate data. Professional skepticism calls for an auditor to have the mind-set of the possibility of fraud and to have a critical evaluation of the data and how the data was obtained. Professional skepticism also calls for the auditor to not allow data that is not persuasive. Through a State’s government, the State Board of Accountancy issues CPA licenses. State laws indicate the importance of a CPA following the AICPA Code. This gives the AICPA Code legal enforceability. A CPA found to be in violation of this code can result in temporary to permanent revocation of his or her CPA designation. Investigations of ethics violations can be carried out by the AICPA, the State Board of Accountancy, and the State Society of CPAs. SOX was created In 2002 as an aid in deterring fraud by eliminating conflicts of interest and incentive packages for CPA firms....
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- Spring '11
- Financial audit, professional skepticism, professional care