The US court examiner’s report into the Lehman Brothers collapse implicated Ernst & Young in the bank’s downfall, but where does the auditor’s responsibility end in relation to fraud? Steve Collings reports.

Auditors under fire following Lehman revelations

Article as posted on accountingweb link

In 2005, International Standards on Auditing (ISAs) replaced the Statement of Auditing Standards (SASs) that governed the audit profession in the UK and Ireland. The introduction of ISAs saw more emphasis being placed on the auditor’s responsibility relating to fraud and error.

Prior to the introduction of ISAs, fraud and error were dealt with in SAS 110: Fraud and error, which was issued in January 1995. Fraud and error are now dealt with in ISA 240: The Auditor’s Responsibility to Consider Fraud and Error in an Audit of Financial Statements.
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