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Write a five paragraph essay regarding the responsibility of an auditor to consi

Write a five paragraph essay regarding the responsibility of an auditor to consider fraud in an audit. There is a distinction between the audit of a publicly traded company and a private company, as the PCAOB/SEC regulates the audits of a publicly traded companies. The AICPA provides the rules for the audit of privately owned companies. Please include at least one paragraph discussing the difference between the enforceability of the rules from the perspective of the PCAOB and the AICPA in this short essay.
As best as I can tell, and correct me if I am wrong:
The current PCAOB regulation: “AS 2401: Consideration of Fraud in a Financial Statement Audit” is a regulation related to the consideration of fraud in an audit. The current regulation is found at https://pcaobus.org/oversight/standards/auditing-standards/details/AS2401 (Links to an external site.) .
The current AICPA rule, AU-C 240, Consideration of Fraud in a Financial Statement: Audit.https://www.aicpa.org/research/standards/auditattest/downloadabledocuments/au-c-00240.pdf
History:
The PCAOB changed its rules for audits effective for audits of financial statements after December 15, 2020. The PCAOB previously adopted AU 316a from the AICPA. Now the PCAOB is using “AS 2401: Consideration of Fraud in a Financial Statement Audit” as a regulation related to the consideration of fraud in an audit. The new regulation is found at https://pcaobus.org/oversight/standards/auditing-standards/details/AS2401 (Links to an external site.) . If you are interested, you can see the old regulation at https://pcaobus.org/oversight/standards/archived-standards/details/AU316a (Links to an external site.)
The AICPA has gone from SAS 99 to AU 316 to AU-C 240, Consideration of Fraud in a Financial Statement, see the changes on page four of https://www.aicpa.org/content/dam/aicpa/interestareas/frc/auditattest/downloadabledocuments/clarity/au-sections-mapped-to-clarity-sass.pdf (Links to an external site.)
“As part of the clarity project, the “AU-C” identifier was established to avoid confusion with references to existing “AU” sections. The “AU-C” identifier had been scheduled to revert back to the AU identifier at the end of 2013, by which time the previous sections would be superseded for all engagements. However, in response to user requests, the AU-C identifier will be retained indefinitely. – The Auditing Standards Board (ASB) has redrafted all of the auditing sections in Codification of Statements on Auditing Standards (contained in AICPA Professional Standards). These sections now reflect the ASB’s established clarity drafting conventions designed to make the standards easier to read, understand, and apply. https://www.aicpa.org/research/standards/auditattest/clarifiedsas.html (Links to an external site.)
PCAOB vs. AICPA:
The AICPA does not have any regulatory power to enforce its rules over non-registered entities. Regulation of non-registered entities is typically performed by state agencies, with CPA auditors of non-registered business entities falling under state regulation. In Texas the TSBPA regulates the auditors of privately held, non-registered entities. .
The PCAOB legally regulates publicly traded companies, or registered entities, and auditors of registered/publicly traded companies. “The Sarbanes-Oxley Act requires public accounting firms to register with the PCAOB to prepare or issue an audit report for a U.S. public company or a broker-dealer, or to play a substantial role in those audits.” Auditors of registered companies have to follow AS or Auditing Standards when auditing a registered company. The PCAOB regulations are typically enforced by the SEC and the PCAOB. PCAOB regulations related to auditing are found here here:https://pcaobus.org/oversight/standards/auditing-standards (Links to an external site.)
When discussing the regulations/rules related to registered, listed or publicly traded companies use AS or Auditing Standards.
When discussing rules related to the audits of private or non-regulated or non-registered companies, use AU-C from the AICPA.
I hope this helps, as this information is not in the textbook. Please let me know if you have any questions.
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DO NOT use referencing!

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