HOLDING EXTERNAL AUDITORS ACCOUNTABLE (2 letters)

The Straits Times; Published on Jul 23, 2012
HOLDING EXTERNAL AUDITORS ACCOUNTABLE
Action will be taken if...
MR YEOW Hwee Ming asked if external auditors are taken to task in investigations into fraud or financial malfeasance ('Fraud: Hold external auditors accountable'; last Thursday).

External auditors of business entities incorporated in Singapore must be public accountants registered with the Accounting and Corporate Regulatory Authority (Acra) and subject to its oversight under the Accountants Act.
Acra's regulatory oversight includes a regular inspection programme during which it inspects samples of public accountants' audit work to see whether they have complied with the Singapore Standards on Auditing, which are based on rigorous international standards.
Despite the best auditing practices, financial anomalies can still occur and can be very difficult to detect. However, if Acra finds that an auditor has not complied with the standards or not performed his duty with due care, it will take appropriate action, which could include disciplinary or prosecution proceedings.
Ang Siok Hui (Ms)
Head, Corporate Communications Division, Accounting and Corporate Regulatory Authority
http://www.straitstimes.com/STForum/Story/STIStory_825138.html
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The Straits Times; Published on Jul 23, 2012
HOLDING EXTERNAL AUDITORS ACCOUNTABLE
It's about offering an opinion, not exposing fraud
WE NOTE Mr Yeow Hwee Ming's concerns ('Fraud: Hold external auditors accountable'; last Thursday).
As the national accountancy body, we will not hesitate to take to task members who fail to discharge their professional duties responsibly.
We have a rigorous disciplinary mechanism in place, which includes striking members off our register, which will result in the revocation of their licence to practise.
However, according to local and international standards, the primary responsibility for fraud prevention and detection lies with those charged with governance and the management.
The responsibility of the external auditor is to obtain reasonable assurance that the financial statements taken as a whole are free from material mis-statement, whether caused by fraud or error.
Nevertheless, the external auditor is required to exercise professional scepticism and due care during an audit.
An external audit is only for the purpose of expressing an opinion on whether the financial statements are prepared and presented fairly in accordance with a specified accounting framework and relevant laws.
It is not for the purpose of detecting or uncovering fraud, which requires fraud investigation or forensic work.
Goh Puay Cheh (Ms)
CPA Singapore
Chief Operating Officer
Institute of Certified Public Accountants of Singapore
http://www.straitstimes.com/STForum/Story/STIStory_825139.html
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24July2012: ST: Fraud: Hold external auditors accountable