The perception of internal audit as a function that can add value in addition to enforcing compliance is placing importance on several objectives for internal auditors. “I think the expectation from the executive suite has increased,” PwC’s Walter Smiechewicz, CPA, said in a telephone interview. “And they are looking for
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Audit & assurance
PCAOB to consider adopting broker-dealer audit standards
The PCAOB will meet at 9:30 a.m. Thursday to consider adopting attestation standards for auditors of brokers and dealers. A new standard on auditing supplemental information that accompanies financial statements audited in accordance with PCAOB standards also will be considered. If approved, the new standards for auditors of brokers and
Internal auditors get modest raises in U.S., Canada
U.S. organizations gave internal auditors slightly more generous base-salary increases in the past 12 months, but the magnitude of raises fell slightly in Canada, according to a new survey report. The percentage of U.S. organizations that gave internal auditors base salary increases of 4% or more grew to 16% from
PCAOB’s reporting model proposal poses risks, rewards for audit firms
If public company auditors are required to communicate more information in their reports, there will be more material to second-guess them on if the company they are auditing takes a fall. That is a concern about a new PCAOB proposal that calls for enhanced communication from auditors—in addition to the
U.S., U.K. audit regulators to continue cross-border cooperation
Audit regulators in the United States and the U.K. agreed to continue cooperating on cross-border supervision of audit firms, the U.K. Financial Reporting Council (FRC) announced Thursday. The agreement between the FRC and the PCAOB does not contain an expiration date, but follows recent European Commission decisions that allow such
PCAOB calls for more care in audits of brokers and dealers
The PCAOB is urging auditors of broker-dealers to conduct audits with due professional care and skepticism after PCAOB inspectors identified deficiencies in 57 of the 60 audits of broker-dealers reviewed during the final 10 months of 2012. A report on the PCAOB’s interim inspection program for broker-dealer audits, which was
PCAOB proposes sweeping changes to the auditor’s reporting model
The PCAOB on Tuesday proposed sweeping changes to the auditor’s reporting model for U.S. public companies that would include a requirement for auditors to identify and describe “critical audit matters.” In addition, new standards and related amendments proposed by the PCAOB would require: A statement of auditor independence. This would
CAQ provides guidance to audit firms for reporting on policies and practices
Six possible elements of audit quality are highlighted in a report released Tuesday by the Center for Audit Quality (CAQ). The report describes elements of audit quality that audit firms could consider in refining or developing their own reporting regarding their public company audit practices. The elements are: Firm leadership
PCAOB to consider proposing new auditor’s reporting model
The PCAOB will meet Tuesday to consider proposing a new auditor’s reporting model as well as new auditor’s responsibilities for other information in an annual report that contains audited financial statements and the auditor’s report. The contents of the auditor’s report have been the subject of significant activity by standard
SEC strengthens broker-dealer audit requirements
The SEC on Wednesday approved rule amendments that strengthen audit requirements for broker-dealers. The amendments are intended to increase protections for investors whose money and securities are turned over to SEC-registered broker-dealers. The final rules are available on the SEC’s website. Under previous rules, broker-dealers are required to file annual
What’s your fraud IQ?
The word skepticism is derived from the Greek word skeptesthai, meaning “to reflect, look, or view.” It has evolved over the past 2,300 years to represent, among other definitions, the application of reason and critical analysis in the search for a factually supported conclusion. In this context, the concept of
Public, private companies report rise in audit fees in FY 2012
Fees for external audits of financial statements paid by U.S. public and private companies rose in fiscal year 2012 over the previous year, according to a new survey report. Audit fees paid by 87 public companies averaged $4.5 million in FY 2012, according to a Financial Executives International (FEI) report.
Proposed international standard would change auditor reports
International auditor reporting guidelines would change significantly and require more communication from auditors under standards proposed Thursday by the International Auditing and Assurance Standards Board (IAASB). The IAASB’s exposure draft includes a new proposed international auditing standard, Communicating Key Audit Matters in the Independent Auditor’s Report, which directs auditors to
ASB proposes clarifying attestation standards
The AICPA Auditing Standards Board (ASB) is proposing changes to its attestation standards as a part of its clarity project. An exposure draft issued Wednesday would clarify and recodify certain Statements on Standards for Attestation Engagements (SSAEs) in the AICPA’s Professional Standards. The ASB has undertaken the clarity project to
U.K. proposal a second blow to mandatory audit firm rotation
Mandatory audit firm rotation was not among the measures the U.K. Competition Commission (CC) proposed Monday to promote competition in the statutory audit services market. But the CC did include mandatory tendering every five years for the United Kingdom’s largest companies in its proposal, a significant shift from the 10-year
New duties on horizon for internal auditors
Even as assurance and compliance responsibilities are expanding for internal auditors, a significant shift in their strategic duties is on the horizon, according to a new survey. More than half (54%) of respondents expect that in the next two years, internal audit’s primary mandate will be providing stakeholders with business
Bill prohibiting mandatory audit firm rotation passes U.S. House
The U.S. House of Representatives on Monday approved a bipartisan bill that would prohibit the PCAOB from requiring mandatory audit firm rotation for public companies. The bill, sponsored by Reps. Robert Hurt, R-Va., and Gregory Meeks, D-N.Y., was introduced on April 15. It would amend the Sarbanes-Oxley Act of 2002
GAO advises SEC to require disclosure of auditor attestation of ICFR
The U.S. Government Accountability Office (GAO) is recommending that the SEC consider requiring public companies to disclose whether they obtained an auditor attestation of their internal controls over financial reporting (ICFR). In a report to congressional committees, the GAO said attestation reports increase investor confidence. Requiring disclosure of whether a
How to maintain independence when auditing a conflict minerals report
An auditor of an SEC issuer’s financial statements is not precluded from performing an independent private-sector audit of that client’s conflict minerals report, according to nonauthoritative guidance prepared by an AICPA task force. Seven new questions and answers the AICPA has issued on its Conflict Minerals Resources webpage provide nonauthoritative
Auditing
The PCAOB took the first step toward what’s intended to be a comprehensive reorganization of its auditing standards. Board members unanimously voted to publish a proposal for a framework that would place the PCAOB’s auditing standards into a topical structure with a single, integrated numbering system. May 28 was
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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.
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