The auditor can no longer assume that no fraud exists unless it smacks them between the eyes.Statement on Auditing Standards 99, issued in 2002, requires auditors to exercise professional skepticism about the possibility of a material misstatement in the financial representations of management due to fraud. Now that SAS 99 is four years old, it is time to investigate this standard that shifted auditors from no fraud detection responsibility to the higher degree of professional care.

Based on current research, it appears that many firms are still struggling with how to properly implement the far-reaching recommendations and requirements found in SAS 99. Therefore, this article presents how some CPA firms are implementing SAS 99, specifically "the application of professional skepticism in gathering and evaluating audit evidence."

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