The Impact of Sas No. 82 on Perceptions of External Auditor Responsibility for Fraud Detection

16 Pages Posted: 19 Dec 2010

See all articles by Todd DeZoort

Todd DeZoort

University of Alabama - Culverhouse School of Accountancy

Tom Lee

University of Alabama

Date Written: September 1, 2003

Abstract

This study evaluates whether perceptions of external auditor responsibility to detect fraud in US financial statement audits are greater under Statement on Auditing Standards (SAS) No. 82 than under the superseded SAS No. 53. A series of four fraud vignettes were evaluated by external auditors, internal auditors, and fraud examiners who were either given a summary of the new standard or the old standard to assess auditor fraud detection responsibilities. The vignettes manipulated fraud materiality and fraud type (i.e. fraudulent financial reporting and misappropriation of assets) within?subject. The results provide consistent evidence that perceptions of external auditor responsibility to detect fraud are higher under SAS No. 82 than under SAS No. 53. In addition, the results indicate that the external auditors' perceptions increased more than the perceptions of the internal auditors and fraud examiners. Finally, the findings revealed that while all participant groups were sensitive to fraud materiality, only the external auditors were sensitive to fraud type.

Keywords: fraud detection, Statement on Auditing Standards No. 53, Statement on Auditing Standards No. 82, external auditors, internal auditors, fraud examiners, Auditing Standards Board, materiality

Suggested Citation

DeZoort, Todd and Lee, Tom, The Impact of Sas No. 82 on Perceptions of External Auditor Responsibility for Fraud Detection (September 1, 2003). International Journal of Auditing, Vol. 2, Issue 2, pp. 167-182, 2003, Available at SSRN: https://ssrn.com/abstract=1727138 or http://dx.doi.org/10.1111/1099-1123.00037

Todd DeZoort (Contact Author)

University of Alabama - Culverhouse School of Accountancy ( email )

Tuscaloosa, AL 35487
United States

Tom Lee

University of Alabama

101 Paul W. Bryant Dr.
Box 870382
Tuscaloosa, AL 35487
United States

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