Audit & assurance news and resources -- Journal of Accountancy

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December 15, 2020

FAQs on SOC 2 and SOC 3 engagements issued by AICPA staff

The AICPA staff has posted new FAQ guidance on issues related to System and Organization Controls 2 and 3 (SOC 2 and SOC 3) engagements.

December 9, 2020

Tips for auditing in a COVID-19 environment

The coronavirus pandemic has dramatically disrupted the focus and procedures involved in many audits. These tips provide best practices, fraud considerations and new procedures practitioners may wish to use.

December 9, 2020

Assessing audit risks during the pandemic

The coronavirus pandemic has caused the risks of material misstatement and fraud to change substantially for many audit clients. Here’s how practitioners can continue delivering high-quality audits in this environment.

December 9, 2020

New attestation standard clarifies work effort of review engagements

The limited assurance obtained by a practitioner in a review engagement is clarified in a standard issued by the AICPA Auditing Standards Board.

December 8, 2020

Why the best critical audit matter disclosures use entity-specific info

Critical audit matters have more value when they provide entity-specific language and avoid boilerplate, experts say.

December 7, 2020

PCAOB changes 2021 inspection focus areas as a result of COVID-19

PCAOB inspectors will focus more in 2021 on industries and audit areas that have experienced disruption as a result of the coronavirus pandemic. Inspectors also will try to become more unpredictable in the audits and areas they examine.

December 3, 2020

Practitioners provide new transparency through critical audit matters

New PCAOB requirements for communicating critical audit matters give practitioners an opportunity to provide additional transparency to financial statement users. A Center for Audit Quality study shows how auditors are delivering this information.

December 2, 2020

Auditing fraud risk during a pandemic

Fraud risk in the financial statements has been elevated amid the coronavirus pandemic. Here’s what practitioners need to know as they audit the risks of fraud during their engagements.

November 19, 2020

PCAOB amends independence requirements to align with SEC changes

The Public Company Accounting Oversight Board issued amendments that are designed to align its independence requirements with SEC rules that were updated in 2019 and 2020.

November 4, 2020

ASB proposal addresses auditing of fair value estimates of financial instruments

A proposed standard issued by the AICPA Auditing Standards Board would give practitioners more guidance on auditing management’s estimates of fair value, including on the use of pricing services.

November 3, 2020

9 tips for successful auditing of revenue recognition

A new standard and the disruption caused by the coronavirus pandemic make auditing revenue recognition difficult. These tips can help.

November 2, 2020

Developing a strategic audit plan

This article outlines steps CPAs should consider when developing strategic audit plans for their own clients.

November 1, 2020

Why risk assessment merits increased auditor focus

In an effort to boost audit quality, the AICPA Peer Review Program is monitoring for instances where firms misunderstand the risk assessment standards. Data suggests that auditors need to devote more attention to assessing the risk of material misstatement and designing appropriate procedures.

October 27, 2020

Cybersecurity provides opportunities for auditors to serve

Practitioners can provide services to clients related to cybersecurity beyond their financial statement auditing role, according to a newly published report from the Center for Audit Quality.

October 23, 2020

Gauging risk assessment and response processes

How well do auditors perform in assessing and responding to risks of material misstatement? New research provides some answers.

October 16, 2020

SEC aims to reduce unnecessary auditor independence red flags

The SEC adopted amendments that are designed to reduce situations that trigger independence rule violations in situations that don’t necessarily impair an auditor’s objectivity or impartiality.

October 12, 2020

Audit committee cybersecurity disclosures rising in proxy statements

Disclosures around oversight of cybersecurity risk by audit committees are increasing in public company proxy statements, according to a yearly analysis released by the Center for Audit Quality and Audit Analytics. But other disclosures have leveled off in recent years.

September 30, 2020