The AICPA Auditing Standards Board (ASB) proposed amendments Thursday to AU-C Section 920, Letters for Underwriters and Certain Other Requesting Parties. AU-C Section 920 was issued as part of the ASB’s clarity project and is a redrafting of AU Section 634 of the same title. When the clarified standard was
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Audit & assurance
ASB issues clarified auditing standard on using the work of internal auditors
With the release of a new auditing standard addressing the external auditor’s responsibilities if using the work of internal auditors, the AICPA Auditing Standards Board has completed the clarity redrafting of its final AU section in AICPA Professional Standards. Developed using International Standard on Auditing 610 (Revised 2013), Using the
Lessons learned: Practical tips to help avoid common EBP audit and reporting errors
Employee benefit plan auditors can use this guidance to avoid relying on improper certifications or overrelying on certifications from trustees or custodians, which can result in inappropriately limiting the scope of the audit.
PCAOB extends comment period on engagement partner ID proposal
The PCAOB has extended the comment period on its reproposed standard that would require the engagement partner and certain other participants in the audit to be identified in the audit report. The new deadline is March 17; the original deadline was Feb. 3. The board reproposed the amendments in December.
ASB exposes additional clarified standards as part of attestation clarity project
Changes proposed Tuesday by the AICPA Auditing Standards Board (ASB) would restructure the content of several important attestation standards. The ASB has issued a second exposure draft as a result of the attestation clarity project. The exposure draft contains three proposed clarified subject-matter-specific standards. Proposed Statement on Standards for Attestation
European audit reform proposal moving forward
April is the forecasted date for a vote of the full European Parliament on European Union audit market reforms, which took another step in the legislative process this week. The EU Legal Affairs Committee voted 13–8, with one abstention, on Tuesday to approve a draft agreement between Parliament and the
Preparers oppose PCAOB’s plan for more auditor disclosures
The message from financial statement preparers to the PCAOB about the content of audit reports is clear. Preparers don’t want their responsibilities usurped by auditors. “While some investors may desire improvements in disclosures, the proper source of this information is management and not the auditor,” Fedex Corp. told the PCAOB
TPA addresses use of current auditing standards for audits of prior periods
The AICPA has issued nonauthoritative guidance addressing the use of current auditing standards for audits of prior periods. According to Technical Question and Answer (TPA) 8100.03, when an auditor is engaged to perform an audit of financial statements that are as of or for a period that ended prior to
A makeover for compilations
Three proposed standards were exposed for public comment by the AICPA Accounting and Review Services Committee (ARSC) on Oct. 23.
Six developments for CPAs to watch in 2014
If you enjoy change, 2014 should be a good year. The months ahead will see the accounting profession gearing up for new regulations and handling significant financial reporting developments, including preparing to implement changes in accounting for revenue. Here are a few of the likely financial reporting and regulatory developments
EU audit reforms “raise serious concerns” for the CAQ
Audit market changes that were preliminarily agreed upon by European Union policymakers this week “raise serious concerns for audit quality,” Center for Audit Quality (CAQ) Executive Director Cindy Fornelli said in a statement. Mandatory audit firm rotation and prohibition of most nonaudit services by audit firms to their audit clients
Grant reform increases single-audit threshold, changes audit rules
New guidelines unveiled Thursday by the Office of Management and Budget (OMB) raise a key threshold for compliance audits of entities that receive federal award money from $500,000 per fiscal year to $750,000 per fiscal year. Among other things, the new rules raise the federal awards threshold that triggers compliance
EU member states approve mandatory audit firm rotation
The European Union took another step toward a mandatory audit firm rotation requirement Wednesday when member states approved new audit regulations. The new regulations and amendments approved include a requirement that audit firms rotate engagements with public-interest entities every 10 years—with provisions for longer periods when engagements are put out
Six key risk areas merit attention in 2013 audit cycle
Auditing of internal control over financial reporting, a topic that has received a lot of attention from the PCAOB this year, is among the key risk factors for the 2013 audit cycle, according to a new Center for Audit Quality (CAQ) alert. The alert describes six key areas of potential
Preliminary EU agreement includes audit firm rotation
European Union leaders have reached preliminary agreement on audit reforms that would include a requirement for audit firms of public-interest entities to rotate after an engagement of 10 years—with provisions that could extend that period if the engagement is put out for bid or joint audits are performed. The Lithuanian
CAQ suggests streamlining proposed auditor reporting duties
The Center for Audit Quality (CAQ) is urging the PCAOB to streamline a proposed process for auditors to provide investors more information on the audit. The PCAOB in August proposed sweeping changes to the auditor’s reporting model and requested comments that are due today. The proposal would require auditors to
PCAOB to consider quality-control standard
Audit firms’ quality controls will be the subject of PCAOB discussion in 2014 that could lead to a new auditing standard, board Chief Auditor and Director of Professional Standards Martin Baumann said Tuesday. The PCAOB plans to issue a concept release seeking comment on ways to address audit firm quality
Effects of nonaudit services at audit firms concern PCAOB, SEC
Regulators are asking whether the increasing provision of nonaudit and consulting services by audit firms poses risks to audit quality, and the PCAOB plans a formal examination of the issue in 2014. The PCAOB plans to hold round-table discussions on the issue next year with audit firm leaders and other
PCAOB seeks improvement in engagement quality reviews
A PCAOB report released Friday instructs audit firms to take steps to ensure that engagement quality reviews detect the audit deficiencies they are meant to identify. Although firms’ methodologies reviewed by the PCAOB were generally consistent with the requirements of Auditing Standard No. 7, Engagement Quality Review, the report says
PCAOB proposal could result in public tracking of auditors
At first, the names of audit engagement partners disclosed in public company audit reports might not mean much to investors, PCAOB Associate Chief Auditor Jessica Watts said Wednesday as she described a new board proposal. Initially, little public information about engagement partners would be available, Watts said, under a PCAOB
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