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 published a staff audit practice alert on auditing fair value measurements in financial statements.

“We were motivated to develop and issue this alert by the auditing challenges presented by the subprime credit situation and its effects on the markets and fair value measurements, and certain issues that might arise in the transition” to FASB Statement no. 157, Fair Value Measurements , Marty Baumann, director of the PCAOB Office of Research and Analysis, said in a news release.

The alert, Matters Related to Auditing Fair Value Measurements of Financial Instruments and the Use of Specialists , creates no new requirements. It highlights matters in four areas:

Auditing fair value measurements.

Classification of fair value measurements within the fair value hierarchy established by Statement no. 157.

The use of specialists in fair value measurements.

The use of pricing services in fair value measurements.

The alert is available at www.pcaobus.org/Standards/Staff_Questions_and_Answers/ 2007/12-10_APA_2.pdf.  

SPONSORED REPORT

2019 State of Financial Reporting Survey

We surveyed nearly 600 finance and accounting professionals on their month-end close and reporting processes. See the results.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.