Recent changes to U.S. GAAP do not change public company auditors’ responsibilities for following existing PCAOB standards when considering a company’s ability to continue as a going concern, the PCAOB said Monday. In a staff audit practice alert, the PCAOB said current auditing requirements remain in force in light of
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Audit & assurance
ASB proposes moving content of AT Section 501 into GAAS
The AICPA Auditing Standards Board (ASB) is proposing moving a section of its attestation standards into generally accepted auditing standards (GAAS). Engagements performed under existing AT Section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements, as well
PCAOB alert calls for auditors to focus on revenue
The PCAOB on Tuesday urged auditors to focus on the board’s standards for auditing revenue. In Staff Audit Practice Alert No. 12, Matters Related to Auditing Revenue in an Audit of Financial Statements, the PCAOB discusses board requirements for auditing revenue that are relevant to significant audit deficiencies found frequently
Audit regulators see positive signs
In an exclusive interview with the JofA, PCAOB members Jay Hanson and Lewis Ferguson bring different perspectives as they talk about ways to improve auditing.
Socially awkward
Total user accounts or total number of posts are used to tout some companies’ success, but those statistics don’t necessarily indicate profitability.
Learn from data to improve audits
Data collected by the AICPA Peer Review team can drive better audits by helping audit firms focus remedies on areas that frequently have been associated with accounting and auditing deficiencies.
A holistic approach to audit quality
The AICPA’s new Enhancing Audit Quality initiative is using a holistic approach to align objectives of audit-related efforts and improve auditing of private entities. A discussion paper seeks comments by Nov. 7 in an exploration of the best ways to address quality issues related to financial statement audits of non-SEC registrants, including not-for-profits, employee benefit plans, and governmental entities.
COSO transition getting a close look from auditors
The early stages of implementation are over for many companies using the updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In 2013, the framework—which had been in use since 1992—was updated to reflect changes in the business environment. U.S. public companies have been
Five elements of effective judgment process for auditors
The public relies on auditors to make critical professional judgments in an objective, professionally skeptical manner. Participants in capital markets who are making investment decisions place trust and confidence in the judgments made by auditors during audits of public company financial statements. A new Professional Judgment Resource released Wednesday by
Clarified, revised SSARS approved for reviews, compilations, and engagements to prepare financial statements
The AICPA Accounting and Review Services Committee (ARSC) voted during its meeting this month to approve clarified and revised standards for reviews, compilations, and engagements to prepare financial statements. The clarified and revised standards for compilations and engagements to prepare financial statements create a bright line between accounting (preparation) services
PCAOB requests comments on auditing accounting estimates and fair value measurements
The PCAOB is seeking input as it weighs possible standard-setting activities related to auditing accounting estimates and fair value measurements. In a staff consultation paper released Tuesday, the PCAOB Office of the Chief Auditor seeks comments on the potential need for changes to PCAOB standards—and a possible approach to a
PCAOB calls for improvement in audits of brokers and dealers
The PCAOB issued a report Monday calling on audit firms to improve the quality of their audits of brokers and dealers to comply with rules and standards. As a result of findings from the PCAOB’s interim inspection program, the board urged firms that audit brokers and dealers to reexamine their
Qualitative considerations for allocating materiality to components in a group audit
Editor’s note: This is the second article in a series of articles about application of the group audits standard. For the first article in the series, see “The Scoop on Group Audits: You May Have Them, Even Though You Think You Don’t.” There is a lot to consider when evaluating
AICPA seeks feedback on private-entity audit quality initiative
In one of the first steps of the new Enhancing Audit Quality (EAQ) initiative, a major effort to improve auditing of private entities, the AICPA has released a discussion paper seeking stakeholder perspectives. Through the two-phased initiative, the AICPA is coordinating resources to improve performance in audits of private entities,
AICPA advises CPA firms to review state registration and compliance
CPA firms are being urged by the AICPA State Regulation and Legislation team to review their registration compliance procedures to ensure that they are complying with out-of-state registration requirements when performing attest engagements. The AICPA advisory was issued after recent activity by some state boards of accountancy to ensure that
ASB issues SAS No. 129 to amend letters for underwriters auditing standard
The AICPA Auditing Standards Board (ASB) has amended its auditing standard on letters for underwriters and certain other requesting parties. The ASB did not originally intend to significantly change or expand AU Section 634, Letters for Underwriters and Certain Other Requesting Parties, when it was redrafted and issued as AU-C
Restatements dropped after initial post-SOX surge, study shows
The number of restatements announced per year by SEC-registered companies has fallen significantly since the early era of post-Sarbanes-Oxley implementation, according to research released Thursday by the Center for Audit Quality (CAQ). Restatements, which surged in 2005 and 2006, fell to a 10-year low in 2009 and remained relatively low
What the PCAOB’s new related-party standard means for auditors
A new PCAOB related-party auditing standard may cause audit firms to revise their audit plans and methodologies to ensure that newly required procedures are fully incorporated into all phases of the audit. The PCAOB issued Auditing Standard (AS) No. 18, Related Parties, on June 10 along with amendments to auditing
PCAOB reaches agreement with audit regulator in Denmark
The PCAOB and Denmark’s audit regulator have entered into a cooperative arrangement for oversight of audit firms in their respective jurisdictions, the PCAOB announced Friday. A framework for joint inspections is provided in the agreement with the Danish Business Authority. The agreement allows for the exchange of confidential information and
PCAOB staff provides guidance for broker-dealer auditors
The PCAOB staff on Thursday issued new guidance for SEC-registered auditors of brokers and dealers as they make the transition to PCAOB standards from the generally accepted auditing standards (GAAS) that previously governed such audits. The staff guidance highlights relevant requirements for audits and attestation engagements. It also provides direction
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