Statement on auditing standards, 053

              Statement on
Auditing Standards
AICPA American Institute of
Certified Public Accountants
April 1988
The Auditor's Responsibility to
Detect and Report Errors and
Irregularities
( Supersedes Statement on Auditing Standards No. 16, AICPA, Professional
Standards, vol. 1, AU sec. 327.)
1. This Statement provides guidance on the independent auditor's
responsibility for the detection of errors and irregularities in an audit of
financial statements in accordance with generally accepted auditing
standards. It describes factors that influence the auditor's ability to
detect errors and irregularities and explains how the exercise of due
care should give appropriate consideration to the possibility of errors
or irregularities. It also provides guidance on the auditor's responsibil­ity
to communicate detected matters both within and outside the
entity whose financial statements are under audit.
Definition of Errors and Irregularities
2. The term errors refers to unintentional misstatements or omis­sions
of amounts or disclosures in financial statements. Errors may
involve —
• Mistakes in gathering or processing accounting data from which
financial statements are prepared.
Copyright © 1988 by the
American Institute of Certified Public Accountants, Inc.
1211 Avenue of the Americas, New York, N. Y. 10036- 8775
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Issued by the Auditing Standards Board 53