Financial Statement Fraud: A New Ball Game‪.‬

Abstract Sarbanes-Oxley, SAS 99, and the Public Company Accounting Oversight Board (PCAOB) have not removed pressures on chief financial officers to manipulate accounting statements. PCAOB recommends an auditor perform at least one walkthrough for each major class of transactions. SAS 99 does not require the use of forensic specialists but does recommend brainstorming, increased professional skepticism, and unpredictable audit tests. A proactive fraud approach involves a review of internal controls and the identification of areas most subject to fraud. Certified Forensic Accountants (Cr.FAs) will continue to be in demand to supplement the efforts of internal and external auditors.