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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (5485)	2/6/2002 2:53:37 PM
From: compradun	Read Replies (2) \| Respond to of 33421

Fraud is specifically excluded under GAAS generally accepted auditing standards. Collusion makes fraud impossible to detect. Therefore auditing merely performs an attest function on management's representations. If management colludes with third parties the fraud is undetectable, for a time. Cashflow usually sinks these "dream" boats. CPAs in an audit are only allowed to report fraud to the audit committee not to the "public". The main recourse is for auditors to resign from the engagement. The real issue is whether AA&co was a party to the collusion.