Auditing


The PCAOB released a report in September that looks at risks and challenges the economic downturn created for audits of financial institutions and other companies.

 

“This report provides illustrative examples of the kinds of issues our inspection program has uncovered during the past three years as a result of the impact of the economic crisis on the work of auditors,” PCAOB Acting Chairman Daniel L. Goelzer said in a press release.

 

Issues discussed in the report include fair value measurements, impairment of goodwill, indefinite-lived intangible assets, and other long-lived assets, allowance for loan losses, off-balance-sheet structures, revenue recognition, inventory and income taxes. It also touches on making improvements to quality-control systems.

 

The report, available at tinyurl.com/27llcek, covers aspects of inspections the PCAOB conducted during the 2007 through 2009 inspection cycles, which generally involved reviews of audits of issuers’ fiscal years ending in 2006 through 2008. The majority of the inspection observations discussed in the report were identified by inspectors during the 2009 inspection cycle and included in 2009 inspection reports, which were issued by the PCAOB in 2010.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.

SPONSORED REPORT

Solving the lease accounting challenge

The challenges of the new lease accounting standard have been pervasive to say the least. In this free, independently-written report, you'll learn effective adoption strategies as well as resources for easing the transition to the new standard.