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
Advertisement
TOPICS
Audit & assurance
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
Additional ASB interpretations address GASB pension issues
The AICPA Auditing Standards Board (ASB) on Thursday issued two interpretations that are designed to help governmental pension plans, participating employers, and their auditors as they implement new GASB standards. Governmental multiple-employer pension plans and their participating employers are facing numerous accounting and auditing issues as a result of GASB
CAQ’s field-testing yields further recommendations to auditor’s reporting model
Field-testing by the Center for Audit Quality (CAQ) of proposed changes to the auditor’s reporting model yielded four key observations related to the identification of “critical audit matters.” The CAQ expressed support for the PCAOB’s effort to update the auditor’s reporting model. The CAQ said in a news release Friday
PCAOB approves new related-party auditing requirements
New PCAOB rules approved Tuesday are designed to strengthen auditors’ scrutiny of related-party transactions and significant unusual transactions. Auditing Standard No. 18, Related Parties, requires the auditor to perform specific procedures to evaluate a company’s identification of, accounting for, and disclosure of the transactions and relationships between a company and
PCAOB to consider new rules for auditing related-party transactions
The PCAOB will meet Tuesday to consider adopting rules that would create new audit procedures that an auditor should perform when examining a company’s transactions with related parties or significant unusual transactions. Board members have sought comment twice on related-party proposals and are considering a standard and amendments to PCAOB
Highlights of ethics research
The authors distill research published in tax and accounting journals of interest to busy practitioners. This article focuses on academic research in ethics.
GASB pension reporting: How to obtain and audit key numbers
State and local government employers who participate in multiple-employer defined benefit pension plans—and the governments’ auditors—may have difficulty obtaining data required by GASB’s new pension standards to prepare employer financial statements and auditing such information. GASB Statement No. 67, Financial Reporting for Pension Plans, provides revised guidance for the financial
Mandatory audit firm rotation rules published in EU
A mandatory audit firm rotation requirement and other audit market reforms have formally became part of European Union law. Rules published Tuesday in the Official Journal of the European Union—the authoritative source of EU law—include: A requirement that public interest entities—which include listed companies, banks, and insurance companies—change auditors after
Proposed peer review change would remove inconsistencies for engagement reviews
Changes to peer review standards proposed last week by the AICPA Peer Review Board (PRB) are designed to remove inconsistencies and improve the transparency of reports for engagement reviews. The proposal, outlined in an exposure draft, would change the impact to an engagement review report when all of the following
Firm mobility and updated definition of attest included in updated UAA
Changes in the Uniform Accountancy Act (UAA) announced Tuesday will update the definition of attest and allow for CPA firm mobility across state borders. The boards of the AICPA and the National Association of State Boards of Accountancy (NASBA) have approved the changes to the UAA. While the UAA is
Proposed IAASB standard seeks to clarify expectations for auditing disclosures
Changes to international auditing standards proposed last week by the International Auditing and Assurance Standards Board (IAASB) are designed to clarify expectations of auditors when auditing financial statement disclosures. One of the key areas addressed in the proposals is attention earlier in the audit process to disclosures, including those where
New two-phased approach designed to reinforce audit quality
In a time of technological innovation, business complexity, and regulatory scrutiny, auditors face a multitude of challenges. Auditors are expanding services at the same time that regulators are considering ways to make the information in the auditor’s report even more relevant for investors. To serve the public in this time
New regulations mean big changes for brokers and dealers—and their auditors
New regulations that take effect June 1 will lead to significant changes for brokers and dealers, futures commission merchants, and their auditors, the AICPA and the Center for Audit Quality (CAQ) said Monday. Auditors should discuss the changes with their broker and dealer and futures commission merchant clients as soon
PCAOB asks for additional comments on standards reorganization
The PCAOB is asking for additional comment on its proposal for reorganizing the board’s auditing standards. The framework would reorganize the existing PCAOB-issued and interim auditing standards by topic with a single numbering system. The original comment period for the proposal ended May 28, 2013. Along with a supplemental request
IAASB reconsiders auditors’ “other information” duties
A new International Auditing and Assurance Standards Board (IAASB) reproposal is intended to clarify and strengthen auditors’ responsibilities related to “other information” that is included in organizations’ annual reports outside the audited financial statements. The reproposed International Standard on Auditing 720 (Revised), The Auditor’s Responsibilities Relating to Other Information, would
CAQ proposes an approach to communicating audit quality indicators
The set of potential audit quality indicators proposed by the Center for Audit Quality (CAQ) on Thursday is the result of a focused effort to find objective measurements for audit work. The CAQ paper is the culmination of a two-year effort with the CAQ’s member firms to develop perspectives regarding
Features
SPONSORED REPORT
Preparing clients for new provisions next tax season
As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.
From The Tax Adviser
October 31, 2025
Recent developments in estate planning
October 31, 2025
Current developments in taxation of individuals: Part 2
September 30, 2025
Current developments in taxation of individuals: Part 1
August 30, 2025
