February
2009
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Article
The Auditing Standards Board (ASB) issued the second clarified auditing standard resulting from its clarity project, which aims to make U.S. GAAP easier to understand and apply and gives each standard a principlesbased objective. Statement on Auditing Standards Audit Documentation (Redrafted) supersedes AU section 339, Audit Documentation. The standard is expected to be effective for audits of financial statements for periods beginning on or after Dec.
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February
2009
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Article
The Center for Audit Quality (CAQ) issued a report highlighting lessons learned from section 404 audits of internal control over financial reporting. The nonauthoritative report, designed to help audit firms that have not yet conducted an integrated audit, as well as more experienced firms, identifies 21 practical tips for auditors.
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November
2008
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Article
The AICPA’s Auditing Standards Board issued two final standards on internal control. Statement on Standards for Attestation Engagements (SSAE) no. 15, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, converges the standards practitioners use for reporting on a nonissuer’s internal control with the PCAOB’s Auditing Standard no.
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April
2008
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BY
Matthew R. Johnson
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Article
Catherine Allen et al.'s article (Navigating the Crossroads of Control and Independence , Dec. 07, page 42) was an excellent article clarifying the guidance in Statement on Auditing Standards (SAS) no. 112 as it applies to private company auditors' responsibilities of communicating internal control matters. Page 46 of the article provided an example of a client failing to detect an error that the practitioner identified as a significant deficiency in internal control over financial reporting that would have caused a misstatement in the financial statements. While the article did not elaborate if the misstatement was material to
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December
2007
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BY
Catherine Allen, Charles E. Landes, Lisa A. Snyder
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Article
EXECUTIVE SUMMARY Statement on Auditing Standards no. 112, Communicating Internal Control Related Matters Identified in an Audit , introduced terms, definitions and guidance for identifying and evaluating control deficiencies and communicating significant deficiencies and material weaknesses. It requires an auditor to communicate in writing to a client’s management and members of governing bodies any significant deficiencies and material weaknesses in internal control over financial reporting identified during an audit.
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December
2007
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BY
Samuel L. Fogleman, Bryce H. Peterson, William G. Heninger, Marshall B. Romney
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Article
EXECUTIVE SUMMARY The crux of the SEC’s interpretive guidance for management is a topdown, riskbased approach that puts risk first and foremost. Four key areas of opportunity can be used to reduce an organization’s overall SOX 404 compliance effort— risk assessment, entitylevel controls, control selection and testing approach .
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November
2003
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BY
William W. Holder, Kenneth R. Schermann, Ray Whittington
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Article
EXECUTIVE SUMMARY FEW ISSUES INVOLVING THE PREPARATION of financial statements in conformity with generally accepted accounting principles have been more elusive and difficult to address and resolve—or of greater importance—than materiality. It also has proved challenging in planning and conducting financial statement audits in accordance with generally accepted auditing standards.
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