Also covered: COSO and its relationship to SAS 145, and ASB member addresses questions related to QM implementation.
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TOPICS
Audit & assurance
AI promises more efficiency but won’t replace auditors
The 2024 BDO Audit Innovation Survey found that 54% of leaders expect their audit firm to use artificial intelligence and other advanced technologies to enhance the audit experience, but the human element is irreplaceable.
PCAOB inspectors offer advice in areas of risk
Public company audits can benefit from expert input, particularly in the rapidly changing world of cryptoassets. Also, the SEC, FASB, and FASAB issued regulatory updates.
A&A Focus recap: Leveraging control testing in an audit
Also, an update from the Auditing Standards Board chair, principal vs. agent analysis when recognizing revenue, and the new required income tax disclosures under FASB Accounting Standards Update No. 2023-09.
SEC approves PCAOB system of quality control
QC 1000 establishes a risk-based system that aligns with AICPA quality management standards, both of which take effect in late 2025.
A&A Focus recap: A deep dive into SAS 145
The August webcast also covered peer review updates, more on using technology in audits, and the AICPA Financial Reporting Framework for Small- and Medium-Sized Entities.
6 ways to improve the peer review experience
A survey of seasoned peer reviewers identifies ways reviewers and the firms being reviewed can change for the better.
Broker-dealer audit deficiencies on the rise, PCAOB finds
The board’s annual report identifies deficiencies in 70% of audit engagement reviews, offers advice aimed at reducing the number.
A&A Focus recap: The ethics of using AI in an audit
The July installment of the monthly newscast series also featured a look at the recently released ACFE Report to the Nations, and the first in a series of conversations about revenue recognition and digital assets.
Warning for EBP audit firms: Service agreements can create headaches
A letter from the Employee Benefit Plan Audit Quality Center addresses nondisclosure agreements and recommends actions that auditors can take to avoid running afoul of legal, regulatory, or professional standards.
Financial restatements drop, a good sign for reporting quality
The number of financial restatements filed with the SEC dropped by more than 50% from 2013 to 2022, according to a Center for Audit Quality study.
Audit smarter by reassessing audit risk
The AICPA Center for Plain English Accounting has developed steps to reimagine risk assessment in a more focused and efficient way.
A&A Focus recap: Top A&A and employee benefit plan issues
The June installment of the monthly newscast series reviews the top issues raised at two of the AICPA’s premier conferences, looks at software being used by auditors, and includes an update from the AICPA’s chief auditor.
TQA addresses related-party disclosure requirements
The AICPA issued a new Technical Question and Answer to provide nonauthoritative guidance regarding the audit implications of a new related-party disclosure requirement for institutions that participate in the financial assistance programs of the Higher Education Act.
PCAOB tightens liability standard
The board took three actions to update auditing standards and procedures, including the adoption of a change to an almost 20-year-old rule that tightens the standard of liability to “negligent” from “reckless” for an associated person who contributes to a firm’s violations.
Quality management: Details of a standard-setting journey
The chair of the AICPA Auditing Standards Board joins the JofA podcast to provide updates on quality management standards and explain why Dec. 15, 2025, is an important date. Listen to the episode or read the Q&A.
AICPA updates practice aid for digital assets
The practice aid for accounting for and auditing of digital assets has new guidance on auditing the valuation of digital assets along with auditing procedures regarding their existence, rights, and obligations.
How auditors can apply a forensic-like approach to fraud
Professionals with forensic and fraud expertise share techniques auditors can use when completing AU-C Section 240 requirements.
A&A Focus recap: CECL, leases, and commercial real estate
The May installment of the monthly newscast series also featured a governmental auditing update.
New SSAE caps standards related to quality management
The statement offers new definitions of “other practitioner” and completes the suite of standards that firms performing A&A services are required to use to design and implement a QM system by Dec. 15, 2025, and to perform A&A services in accordance with for engagements beginning on or after that date.
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