PCAOB inspections are inevitable for firms that audit public companies. Firms that audit more than 100 public companies are inspected yearly. Firms that audit fewer than 100 public companies are inspected at least once every three years. A high-level overview of that process is provided by the Center for Audit
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Audit & assurance
Ethics / Compilation & review
Two AICPA committees extended comment deadlines to Nov. 30 on recently proposed revisions to professional standards. The proposed change to the ethics rules would require CPAs who prepare financial statements for attest clients to apply the general requirements of Interpretation No. 101-3, Nonattest Services, to maintain their independence. Proposed changes
Auditing
The AICPA’s Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted), as a result of its Clarity Project to supersede SAS No. 59, The Auditor’s Consideration of an Entity’s Ability to Continue
Embracing change
Richard J. Caturano, CPA, CGMA Title: Executive managing partner, Boston office, McGladrey LLP City: Boston Education: B.S. in accounting, M.S. in taxation, Bentley College Date of birth: Nov. 18, 1952 Family: Wife, Barbara; son, Anthony; daughter, Christina Ryan; son-in-law, Shane Ryan; grandson, Rhys Richard Ryan Device he can’t live without:
Guidance issued on reporting pursuant to the Global Investment Performance Standards
Issued under the authority of the AICPA Auditing Standards Board, Statement of Position 12-1, Reporting Pursuant to the Global Investment Performance Standards, supersedes SOP 06-1 of the same title and paragraphs 11.37–.42 of chapter 11, “Independent Auditor’s Reports and Client Representations,” of the AICPA Audit and Accounting Guide Investment Companies
New tool aids in evaluation of external auditors
With interactions between audit committees and external auditors a focus of a steady stream of news recently, a new tool has been developed to assist audit committees in annual evaluations of external auditors. The Center for Audit Quality (CAQ), which is affiliated with the AICPA, is one of seven organizations
CAQ releases practice aid on audit communication
How should audit firms and audit committees be talking to each other? The Center for Audit Quality (CAQ) examines the question in a brief guide released Wednesday on ways to enhance the flow of information on audit inspections and quality-control matters. The CAQ practice aid says that “transparent, candid communication
ASB recommends scoping nonissuers out of “auditor commentary” requirements
An AICPA committee is weighing in on a recent International Auditing and Assurance Standards Board (IAASB) proposal that would require expanded commentary in auditors’ reports. Nonissuers, such as private companies and nonprofits, should be scoped out of requirements for “auditor commentary” when the IAASB’s proposed standard is developed, according to a
Survey takes pulse of board members, shows opposition to audit firm rotation
Corporate board members charged with oversight of U.S. public companies are opposed to mandatory rotation of external auditors by more than 2 to 1, a new survey shows. Mandatory audit firm rotation is a continuing subject of debate in Europe and the United States, where regulators are exploring such a
Scope of appropriate content, structure in auditor’s report under debate
Change apparently is coming to the auditor’s report, but views vary over the appropriate content and structure for reports, and particularly over the issue of “auditor commentary.” The question of appropriate content and structure for the auditor’s report was the subject of an International Auditing and Assurance Standards Board (IAASB)
Proposed amendments clear way for audits of SME Framework financial statements
Proposed amendments to auditing standards issued today by the AICPA Auditing Standards Board (ASB) include changes that would clear the way for audits of financial statements prepared in accordance with the special-purpose financial reporting framework for small and medium-size entities (FRF-SME) the AICPA is developing. The proposal, Omnibus Statement on
Comment deadlines extended on proposed professional standard revisions
Two AICPA committees are extending comment deadlines to Nov. 30 on recently proposed revisions to professional standards. The proposed change to the ethics rules would require CPAs who prepare financial statements for attest clients to apply the general requirements of Interpretation No. 101-3, Nonattest Services, to maintain their independence. The
ASB seeking feedback specific to U.S. auditor’s reports
The AICPA’s Auditing Standards Board (ASB) is asking members to complete a survey to help inform the board’s response to the International Auditing and Assurance Standards Board (IAASB) Invitation to Comment: Improving the Auditor’s Report (ITC). On June 22, the IAASB released its ITC, seeking input on potential changes to
PwC: Internal audit has to play a more substantial role in information security
Most companies fail to adequately monitor and update their defenses against cybercriminals, raising the risk of costly data security breaches, according to PwC. Fortifying Your Defenses: The Role of Internal Audit in Assuring Data Security and Privacy, a PwC white paper, asserts that the increasing frequency and sophistication of hacker
PCAOB adopts rules on communication between audit committees, external auditors
A new auditing standard approved unanimously Wednesday by the PCAOB is designed to encourage two-way, effective communication between external auditors and audit committees during public company audits. With the aim of improving audit quality, the PCAOB approved Auditing Standard (AS) No. 16, Communications With Audit Committees, and amendments to other
The week ahead: PCAOB considers audit committee communications standard
An auditing standard on communications between auditors and audit committees that has been under development for more than two years will be among the most-watched items in the accounting profession this week. The PCAOB will consider the reproposed standard for adoption during an open meeting of the PCAOB at 9:30
ASB to vote on whether to propose amendments to two clarified auditing standards
The AICPA Auditing Standards Board (ASB) will vote Aug. 16 on whether to issue an exposure draft to propose amending two clarified standards that take effect Dec. 15. In response to member requests for further clarity, the ASB plans to propose Omnibus Statement on Auditing Standards—2012. This proposed statement on
Auditing Standards Board issues Statement on Auditing Standards No. 126
The AICPA’s Auditing Standards Board (ASB) issued Statement on Auditing Standards (SAS) No. 126, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern (Redrafted), as a result of its Clarity Project to supersede SAS No. 59, The Auditor’s Consideration of an Entity’s Ability to Continue as
Four steps to formalize internal audit’s strategic impact
Internal audit isn’t just about compliance anymore. Increasingly, the function’s role is being incorporated into the broader business strategy – from mulling over major capital projects to advising on mergers and acquisitions. But executives say they need to do a better job of formally describing the role internal auditors will
PCAOB gives audit committees guidance on inspections of audit firms
In an effort to help audit committees make informed decisions, the PCAOB on Wednesday released a 26-page report describing how its inspections of audit firms work and how to gather information from audit firms about those inspections. PCAOB inspection reports are partly public and partly private. In the release, Information
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