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.
