Audit & assurance news and resources -- Journal of Accountancy

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February 1, 2015

I’m not biased, am I?

Five common judgment biases can have a negative impact on accounting and auditing decisions. Learn how to spot these biases, and take a short quiz to see how they can affect your judgment.

February 1, 2015

All CPAs should be concerned about going concern

Approximately 30% of claims brought against CPAs in the AICPA Professional Liability Insurance Program are made by third parties. Moreover, nearly 60% of the program’s 2013 financial statement services claims related to the failure to detect a misstatement or a disclosure error, especially going-concern disclosures.

January 30, 2015

Audit committee members need more time, expertise to deal with risky environment, survey says

Risk concerns have put a strain on audit committees, who say they need more time and expertise to exercise proper oversight.

January 28, 2015

New standards for auditors of brokers and dealers are focus of PCAOB reminder

A PCAOB report reminds auditors of brokers and dealers that new audit standards for those engagements differ from previous standards.

January 26, 2015

ASB issues auditing interpretations to SAS No. 126 on going concern

New auditing interpretations issued by the AICPA Auditing Standards Board are the result of a short-term initiative to address some of the effects of accounting standards on going concern.

January 16, 2015

New IAASB standard changes auditor’s reporting model

A new standard released by the International Auditing and Assurance Standards Board changes rules about how auditors will communicate about their work in their reports.

January 9, 2015

PCAOB to seek comments on going concern

The project is responding to new FASB requirements for management’s evaluation of going concern.

January 1, 2015

Key auditor considerations for GASB pension standards’ rollout

Timely communication between pension plans, government employers, and their auditors is essential in implementing the new standards.

December 15, 2014

Evolving practice monitoring to improve quality in A&A engagements

In a new concept of practice monitoring the AICPA envisions for the future, peer reviewers and firms will use a new technology platform to enable more thorough analysis and provide more timely feedback for accounting, auditing and attestation engagements.

December 8, 2014

SEC official: PCAOB’s standard setting too slow

The PCAOB’s pace of developing auditing standards is too slow, SEC Chief Accountant James Schnurr said. He plans reviews of the process in hopes of speeding it up.

December 4, 2014

7 risk areas for the 2014 audit cycle

Revenue recognition and internal control over financial reporting are among the key risk factors in the 2014 audit cycle, according to an alert by the Center for Audit Quality (CAQ). The alert details seven key areas of potential risk in auditors’ work.

December 3, 2014

What to consider when hiring an employee benefit plan auditor

Employee benefit plan administrators have a lot to consider when hiring a financial statement auditor. Here’s what to look for when seeking a firm for this important service.

December 2, 2014

What do public companies disclose about auditor relationships?

Proxy reports filed by U.S. public companies often discuss how nonaudit services may affect independence, according to a new report. But other elements of relationships with auditors are disclosed less often.

December 1, 2014

A bright line in SSARSs

New standards for accounting and review services include significant changes for accountants in public practice who prepare financial statements for clients. Find out more about the changes contained in newly issued Statement on Standards for Accounting and Review Services (SSARS) No. 21.

December 1, 2014

Auditing / Financial reporting

New Technical Questions and Answers (TPAs) have been issued and are available on the AICPA website to provide nonauthoritative guidance.

December 1, 2014

Auditing

The PCAOB may consider a different mechanism for disclosing the name of the engagement partner after a proposal last year raised significant objections from the accounting profession.

November 25, 2014

PCAOB may soon require naming of engagement partner

PCAOB Chairman James Doty hopes the board will complete a standard early next year that will require the naming of the engagement partner and other firms participating in U.S. public company audits.

November 19, 2014

Alert focuses on independence rules for auditors of certain nonissuers

The Center for Audit Quality (CAQ) and the AICPA on Wednesday issued a joint alert to provide audit firms with an overview of SEC and PCAOB independence rules that apply to financial statement audit and attestation engagements for certain nonissuers. The alert is intended for auditors of: SEC-registered, nonissuer broker-dealers;

November 18, 2014

Internal auditors’ job satisfaction higher with incentive pay, survey finds

Internal auditors who receive incentives based on profits or revenue report higher job satisfaction and loyalty to their organizations without having their objectivity compromised, according to a new survey report. Among the 1,600 internal auditors who responded to the survey conducted in North America, about 50% of chief audit executives,

November 14, 2014

Ingredients of an effective audit committee

The audit committee is a fundamental part of the corporate governance structure. But with changing demands being placed on it, what steps can companies take to ensure that the committee effectively safeguards stakeholders? A popular panel at the 2014 World Congress of Accountants in Rome explored the issue. Here are