The SEC approved PCAOB Auditing Standard No. 16, Communications With Audit Committees, and related amendments to PCAOB standards that were designed to help external auditors communicate effectively with audit committees during public company audits. All U.S. public companies, including emerging growth companies as defined in the Jumpstart Our Business
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Audit & assurance
Clarifying the standard for group audits
As a result of the AICPA Auditing Standards Board’s (ASB) Clarity Project, a new standard has been developed that provides clearer requirements and guidance for audits of group financial statements, in particular those in which part of the work is performed by auditors other than the auditor who expresses the
Report shows decrease in audit deficiencies among certain U.S. firms
A new PCAOB report appears to signal improvement in audit quality among U.S. firms that audited 100 or fewer public companies. The rate of significant audit performance deficiencies identified in audits conducted by such firms declined from 2007 to 2010 compared with the 2004–2006 period tracked in a previous PCAOB
U.K. regulator considering mandatory audit firm rotation
A much awaited summary of provisional findings of the U.K. Competition Commission (CC) stated that companies are reluctant to change auditors because they have difficulty comparing alternatives with their existing auditor, prefer continuity, and face significant costs in switching auditors. In addition, the provisional findings, released Friday, stated that instead
Proposed federal grant reforms would raise single-audit threshold
Proposed reforms designed to streamline and improve the way the federal government administers more than $600 billion in grants annually were published Friday by the Office of Management and Budget (OMB). The OMB is proposing broad reforms to compliance audits performed under OMB Circular A-133, Audits of States, Local Governments,
PCAOB reaches agreement with French, Finnish audit regulators
The PCAOB has reached agreements with audit regulators in France and Finland that provide a framework for joint inspections of audit firms subject to the regulatory jurisdictions of the PCAOB and regulators in those countries. The agreements with the French High Council for Statutory Auditors (H3C) and the Auditing Board
Internal audit reporting line to CEO gains steam as Fed weighs in
The idea of having the internal audit function report administratively to the CEO may be gaining steam. The Federal Reserve has issued guidance to encourage U.S. banks with more than $10 billion in total assets to have their internal audit functions report to the chief executive—a move that could influence
From CGMA Magazine: Softer skills for a broader role
Internal auditors were once thought of solely as the go-to people for all issues relating to financial controls and governance. But in the wake of the global financial crisis, internal auditors have become increasingly relied upon to identify operational risks and provide strategic insight on everything from mergers and acquisitions
IAASB, PCAOB, CAQ seek ways to measure audit quality
Without concrete, objective ways to measure audit quality, it is difficult to assess whether efforts to improve audits have been successful. The International Auditing and Assurance Standards Board (IAASB), one of many organizations attempting to tackle this challenge, has issued a consultation paper, A Framework for Audit Quality, that it
AICPA committee withdraws compilation, association ED
The AICPA Accounting and Review Services Committee (ARSC) has voted to withdraw its compilation and association exposure draft in response to comment letters from stakeholders. The compilation proposal would have revised the applicability of the compilation standard but would have retained the compilation service as an attest service. The association
CAQ, AAA team to give researchers access to audit firm personnel
A new program announced Thursday by the Center for Audit Quality (CAQ) and the Auditing Section of the American Accounting Association (AAA) will help accounting and auditing academics gain access to audit firm personnel to participate in academic research projects. The joint venture between the CAQ and AAA Auditing Section
Amendment enables audits of statements prepared under new framework
A new statement issued by the Auditing Standards Board (ASB) clears the way for audits of financial statements prepared in accordance with the Financial Reporting Framework for Small- and Medium-Sized Entities (SMEs) that the AICPA is developing. Statement on Auditing Standards (SAS) No. 127, Omnibus Statement on Auditing Standards—2013, defines
Effective date of AU-C Section 905 in compliance audit a matter of judgment
Auditors should use professional judgment of the circumstances to determine which effective date of AU-C Section 905 applies in a compliance audit performed pursuant to AU-C Section 935, Compliance Audits, and Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, according to a new
“Exciting and challenging times” coming for auditors
International auditing standards appear set for a period of substantial change as investors seek more information, new forms of reporting emerge, and companies look to provide assurance on additional items. The International Auditing and Assurance Standards Board (IAASB) plans to release an exposure draft in June in its ongoing project
More North American companies rewarding internal auditors with pay raises, perks
Internal auditors—whose roles have increased in importance in recent years due to increased regulatory demands—were more likely to receive pay raises in 2012, and those with specialized skills and certifications received larger pay increases, according to new research. The analysis, conducted by the Institute of Internal Auditors (IIA), also revealed
Budget, staff projected to rise for internal audit departments
Companies are devoting more money and staff to internal audit. Half of companies are maintaining their internal audit budget, and 41% plan to increase their spending, according to The Pulse of the Profession, a twice-annual survey of North American audit executives by The Institute of Internal Auditors (IIA). That’s the
SEC approves PCAOB standard on communication with audit committees
The SEC has approved PCAOB Auditing Standard No. 16, Communications with Audit Committees, and related amendments to PCAOB standards that were designed to help external auditors communicate effectively with audit committees during public company audits. All U.S. public companies, including emerging growth companies as defined in the Jumpstart Our Business
Twenty-three tips provide implementation guidance about audits of group financial statements
Auditors looking for guidance on the new clarified auditing standard about audits of group financial statements can turn to a new resource. The new standard, AU-C Section 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) (AICPA, Professional Standards), took effect for audits of group financial
PCAOB finds common threads in ICFR audit deficiencies
Insufficient testing of controls and failure to properly evaluate control deficiencies were among the common findings that led the PCAOB to issue a summary of observations from 2010 inspections of audits of internal control over financial reporting. The PCAOB on Monday released a 31-page report on deficiencies in firms’ audits
PCAOB will issue report on problems with audits of ICFR
Persistent problems related to audits of internal control over financial reporting (ICFR) have led the PCAOB to issue a report describing the four problems. The PCAOB will issue a Rule 4010 report to describe the results of recent inspections with regard to audits of ICFR, PCAOB Director of Registration and
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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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