Implications of Regulatory Prescriptions & Audit Standards on the Evolution of Forensic Accounting in the Audit Process

Abstract

The arrival of the Sarbanes-Oxley Act of 2002 (Sarbox), the subsequent formation of the Public Company Accounting Oversight Board (PCAOB) and the implementation of the Statement on Auditing Standards No. 99 (SAS 99) has presented the current auditing environment with a new paradigm that makes finding fraud a priority. A nationwide survey was conducted for a random sample of accounting academics, forensic accounting practitioners, and auditors regarding the addition of forensic accounting skills to the audit process. The results indicate that overall levels of agreement with the survey statements existed for all three groups, and whatever differences were found fell within the range of agreement.