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November 2009 |  Article

Henry Keizer is the global head of audit for KPMG International and U.S. vice chair of audit for KPMG LLP. He also is a member of the AICPA board of directors. He spoke with JofA Publisher and EditorinChief Joanne Fiore following the AICPA’s board of directors meeting in August and in a followup email interview.

September 2009 |  BY MARK E. RILEY, CPA, PH.D., WILLIAM R. PASEWARK, CPA, PH.D. |  Article

Calculating estimates of the collectibility of accounts receivable and auditing those estimates is difficult. This article describes three techniques for assessing allowance for doubtful accounts estimates and complying with Statement on Auditing Standards (SAS) no. 57 and AU section 342, Auditing Accounting Estimates, which suggest auditors compare prior accounting estimates with subsequent results to evaluate the reliability of the process used to develop estimates.

July 2009 |  Article

The AICPA Auditing Standards Board issued two exposure drafts resulting from its clarity project Proposed Statement on Auditing Standards (SAS), Quality Control for an Audit of Financial Statements. The proposed SAS specifies quality control procedures at the engagement level that assist the auditor in achieving the objectives of the quality control standards.

March 2009 |  Article

The AICPA released for exposure certain risk assessment standards rewritten as part of its clarity project. The proposed risk assessment standards have been redrafted into a format that clearly identifies objectives, relevant definitions, requirements, and application and other explanatory material. Comments on the exposure drafts are due April 30.

November 2008 |  Article

The AICPA’s Auditing Standards Board has revised Auditing Interpretation no. 1, Use of Electronic Confirmations, of SAS no. 67, The Confirmation Process (AU section 330). The interpretation has been revised to provide guidance on the use of electronic confirmations and their reliability in the confirmation process. Auditors are likely to work more with electronic confirmations as the financial sector shifts away from accepting paper confirmation requests.

October 2008 |  BY Mark Landis, Scott I. Jerris, and Mike Braswell |  Article

EXECUTIVE SUMMARY The PCAOB in 2007 raised concerns about accounting firms meeting the brainstorming mandates of SAS no. 99, which requires auditors to brainstorm to determine possible fraud risks, and SAS no. 109, which requires auditors to brainstorm to identify additional causes of potential material misstatements in financial statements.

May 2008 |  Article

Employee benefit plan sponsors and ­administrators can save time selecting an audit firm and evaluating the quality of its services by writing a thorough Request for Proposal (RFP). Consider these tips offered by the AICPA Employee Benefit Plan Audit Quality Center P Provide a brief description of the engagement.

May 2008 |  BY Catherine Allen, Robert Bunting |  Article

EXECUTIVE SUMMARY Standard setting organizations in more than 100 countries have adopted the International Federation of Accountants’ (IFAC) Code of Ethics for Professional Accountants, while others are in the process of converging with the code. The code applies to professionals in public practice, business, academia and government.

April 2008 |  BY McConnell, Charles H. Schweiger |  Article

Welldesigned audit confirmation practices provide valuable thirdparty evidence that sheds light on financial statement assertions made by management. Confirmations can be an effective tool for auditors working with accounts including payables and receivables, inventory, investment securities, lines of credit and other actual or contingent liabilities. The procedures also can supply audit evidence to help determine whether complex revenue recognition arrangements or relatedparty transactions are appropriate and corroborate account balances and other information from financial institutions.

February 2008 |  BY Kelly M. Hnatt |  Article

EXECUTIVE SUMMARY Deepening insolvency is a relatively new and developing legal theory. Courts have disagreed about whether deepening insolvency is a standalone tort claim or simply a basis for seeking damages related to fraud, professional malpractice or another claim. If an auditor is alleged to have “missed” an accounting irregularity in an audit or the performance of other services, and eventually the company fails, a claim for deepening insolvency might be asserted.