Auditors must go beyond the recently proposed Statement of Auditing Standards ("SAS-) 99, which creates an affirmative duty to perform only "minimum- procedures to detect material fraud, including making inquiries of management. ... The more active and thorough the audit committee, the greater the assurance of management oversight and its effectiveness. ... Financial reports should illuminate "gray areas- "those areas where management's discretionary judgment was used. ... Better disclosures by management are needed to understand the true financial health of a company. ...

• Word Count: 1348
• Approx Pages: 5
• Grade Level: Graduate