Gear up to audit in a recession

How will economic hardship affect the audit process? That's a good question, and one that the Public Company Accounting Oversight Board is addressing with an advisory group. CFO.com reports that the 36-person group of advisors is concerned "not only about increases in fraud, however, but also about the need for more thorough analysis of financial statements, the importance of considering liquidity, and various puzzles connected with the auditing of companies that are recipients of government bailouts." Still, the increased likelihood of fraud seems to be the top worry. At a time likes this, people will be tempted to do whatever it takes--such as improper revenue recognition and the like--to save their company. They may not see it as fraud at the time, but that doesn't make it legal. Compliance processes are now as critical as ever. Here's the CFO.com article.