Adherence to accounting principles can in most part result in well-presented financial statements, however in the establishment of the accounting principles it’s still difficult to predetermine all instances that will result in financial statements that are not misleading. I believe that we could further increase the scope of audits

, improve the quality of information provided to the public, improve auditor education, and protect auditor independence in order to restore trust in auditing and accounting principles.

First, fraud detection must be recognized as a responsibility of auditors. The scope of audits must be expanded, and looking for fraud must be made an affirmative audit obligation.

Recently, PricewaterhouseCoopers publicly embraced the need for fraud detection as part of the audit function. The New York Times characterized such a change as risky for auditors, noting that such a course might expose them to increased liability. Yet it is hard to imagine greater liability than the profession has already taken on by failing to increase its fraud detection responsibility. If clients knew that audits required fraud detection, they would also know that they could not shop around for compliant auditors.

Currently, auditors must assess the adequacy of such disclosures in light of the circumstances and facts known to the auditors at the time of the audit.135 however; auditors should assess the adequacy of such disclosures in light of auditors’ own investigations as well. They could then disclose the aggressiveness of the company’s practices compared to industry practices, ranges of acceptable practices, and risks.

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