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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:
Business combinations and impairment of assets
Loans and accounts receivable (including allowance accounts)
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.