Auditing


For news from the AICPA and state societies, visit www.cpa2biz.com, which also offers online CPE, AICPA professional literature, practice management aids and links to state society Web sites.

 

AUDITING
The PCAOB identified 11 areas in which auditing or quality control deficiencies were observed during inspections of U.S. firms that audited 100 or fewer public companies.

The findings were based on inspections conducted between 2004 and 2006. The PCAOB released a report on the deficiencies to help firms continue to improve quality control and comply with standards.

Areas in which deficiencies were observed were:

Revenue

Related-party transactions

Equity transactions

Business combinations and impairment of assets

Going-concern considerations

Loans and accounts receivable (including allowance accounts)

Service organizations

Use of other auditors

Use of the work of specialists

Independence, including prohibited non-audit services, indemnification and firm independence policies and procedures and independence confirmation with audit committees

Concurring partner review

The report is available at www.pcaobus.org/Inspections/Other/2007/10-22_4010_Report.pdf.

Current Issues in Auditing, the auditing section of the American Accounting Association’s new journal, is now online. Published papers are available free of charge at www.atypon-link.com/AAA/loi/cia. The AAA’s new manuscript management system is at http://ciia.peerx-press.org. The site will serve as the portal for submissions, reviews, and decision letters.

CIIA has accepted papers including The Sarbanes-Oxley Act of 2002—Restoring Investor Confidence, by former U.S. Rep. Michael G. Oxley, R-Ohio, and Top-Ten Wish List for Audit Research, by Edward Nusbaum, CEO of Grant Thornton LLP.

CIIA’s co-editors are Dana R. Hermanson, of Kennesaw State University, and D. Scott Showalter, of KPMG LLP.

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out