Failure to gather "sufficient competent audit evidence" was the top audit deficiency in a survey commissioned by the Center for Audit Quality, affiliated with the AICPA. The survey looked at cases between 1998 and 2010 in which the Securities and Exchange Commission looked into fraudulent financial reporting that eventually resulted in sanctions against auditors. Lack of professional care, insufficient professional skepticism, not getting adequate evidence in relation to management representations and not communicating an audit opinion that is appropriate were other audit deficiencies cited in the survey.

Full Story:

Related Summaries