Practice alert issued on illegal acts.

• Position: Accounting & auditing news - Professional Issues Task Force - Brief Article

The Professional Issues Task Force has issued Practice Alert 2004-1, Illegal Acts, to provide auditors of non-issuers and their firms guidance regarding the extent of the consideration an independent auditor should give to the possibility of illegal acts by a client in an audit of financial statements in accordance with generally accepted auditing standards. The alert provides guidance in the following areas:

* The auditor's responsibility for detection of illegal acts having a direct and material effect on the financial statements.

* The auditor's responsibility for detection of illegal acts having an indirect effect on the financial statements.

* Audit procedures in the absence of specific information indicating the existence of possible illegal...