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

Tax reform changes are now in effect

With all the recent tax law changes, this year it’s more important than ever to make sure your clients’ tax situations are squared away before year end. This report provides necessary guidance to ensure 2019 starts without a hitch.

PODCAST

Using drones to enhance audits

Hermann Sidhu, CPA, global assurance digital leader at EY, walks us through EY’s exciting new project to use drones to help audit large warehouses and outdoor inventories.