Advertisement
TOPICS

Audit & assurance

News Highlights for January 2011

  FASB issued a discussion paper to gather input from stakeholders about the time and effort that will be involved in adapting to several anticipated new accounting and reporting standards and when those standards, which are part of the FASB and International Accounting Standards Board (IASB) convergence projects, should be

Auditing

The Auditing Standards Board issued Interpretation no. 1, “Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement Act,” of AT section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements (AICPA, Professional Standards, vol. 1). The

PCAOB Proposes Interim Program for Inspection of Broker-Dealer Audits

The PCAOB on Tuesday proposed for public comment a temporary rule to establish an interim inspection program for registered public accounting firms’ audits of brokers and dealers, while the board considers the scope and other elements of a permanent inspection program, consistent with the Dodd-Frank Wall Street Reform and Consumer

AICPA Questions Costs/Benefits of EC Audit Proposals

In its response to a recent European Commission (EC) green paper, Audit Policy: Lessons from the Crisis, the AICPA said that any resulting recommendations for improvements to the audit profession should be subject to robust cost/benefit analyses and impact assessments. The Institute also challenged any implication that the “audit profession

Broker-Dealer Audits, Reporting Model on PCAOB Agenda

Broker-dealer audits, the auditor’s reporting model and foreign inspections will be among the PCAOB’s top priorities in 2011, according to the board’s acting chairman, Daniel L. Goelzer. The Dodd-Frank Wall Street Reform and Consumer Protection Act gave the board authority over auditors of all SEC-registered securities broker-dealers. Those auditors had previously

Exhibit Issued for AICPA Audit Guide Compilation and Review Engagements

The AICPA issued an exhibit to help answer questions regarding the impact of Statement on Standards for Accounting and Review Services (SSARS) no. 19, Compilation and Review Engagements, on compilations and reviews of personal financial statements. The Accounting and Review Services Committee issued SSARS no. 19 in December 2009, making

Auditing

The PCAOB released a report in September that looks at risks and challenges the economic downturn created for audits of financial institutions and other companies. “This report provides illustrative examples of the kinds of issues our inspection program has uncovered during the past three years as a result of the

Proposed Changes to GAO’s Yellow Book Promote Harmonization of Auditing Standards

In August, the Government Accountability Office (GAO) issued proposed standards revising Generally Accepted Government Auditing Standards (GAGAS), commonly known as the “Yellow Book.” The update revises the July 2007 Yellow Book and is expected to be effective for audits beginning after Dec. 15, 2011, with the exception of the financial

PCAOB’s 11.5% Budget Hike Includes Dodd-Frank Costs

The PCAOB on Tuesday approved an 11.5% increase in its 2011 fiscal-year budget, a spending plan that the board says reflects its new responsibilities under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The board also approved its five-year strategic plan. The $204.4 million budget is $21.1 million more

ASB Issues Interpretation Regarding Insured Depository Institutions

The Auditing Standards Board has issued Interpretation no. 1, “Reporting Under Section 112 of the Federal Deposit Insurance Corporation Improvement Act,” of AT section 501, An Examination of an Entity’s Internal Control Over Financial Reporting That Is Integrated With an Audit of Its Financial Statements (AICPA, Professional Standards, vol. 1).

Court Rules on Question of Wrongdoing Companies Seeking Damages From Auditors

Editor’s note: This is a report from AICPA General Counsel and Secretary Richard I. Miller, Esq. The New York Court of Appeals held recently that the in pari delicto (literally, “in equal fault”) defense is a complete bar to recovery of damages by a wrongdoing corporation against its outside auditors,

AICPA Seeks Further Guidance From Regulators on New FHA Program Requirement

The U.S. Department of Housing and Urban Development (HUD) issued notice of a Federal Housing Administration (FHA) program change as a result of Mortgagee Letter 2009-31, “Strengthening Counterparty Risk Management,” issued Sept. 18, 2009. This policy change affects all supervised mortgagees. Effective for fiscal years ending on or after Jan.

CAQ Outlines Plan to Mitigate Fraud, Announces Partnerships

The Center for Audit Quality (CAQ) on Wednesday published a report that outlines the organization’s long-term agenda to combat financial reporting fraud. The report, Deterring and Detecting Financial Reporting Fraud—A Platform for Action, identifies three areas of focus: a strong, highly ethical tone at the top that permeates the corporate

Patti Named CAQ’s Senior Director of Professional Practice, Policy & Research

Allison M. Patti joined the Center for Audit Quality for a one-year fellowship as senior director of Professional Practice, Policy & Research. A partner at Deloitte LLP and a former professional accounting fellow in the SEC’s Office of the Chief Accountant, Patti will help guide the CAQ’s member services, professional

Highlights

Along with the leadership change, FAF announced that FASB is reverting from its current five-member board makeup to seven members. FASB previously operated with seven board members from its inception in 1973 until 2008. The changes come at a time when FASB and its international counterpart, the International Accounting Standards

Auditing

  The PCAOB released for comment a proposed auditing standard (tinyurl.com/29bayna) that it says would update and expand the requirements related to the auditor’s use of confirmations, requiring a high level of evidence. In a statement issued with the proposed new standard, PCAOB Acting Chairman Daniel Goelzer said the proposal

Report Examines Downturn’s Impact on Audits of Financial Institutions

The PCAOB on Wednesday released a report that looks at risks and challenges the economic downturn created for audits of financial institutions and other companies.  “This report provides illustrative examples of the kinds of issues our inspection program has uncovered during the past three years as a result of the

Survey: Investors Remain Confident in Audited Financial Statements

Despite fluctuating markets over the past year, individual investors remain confident in investing in publicly traded U.S. companies and in their audited financial information, according to the fourth annual “Main Street Investor Survey,” released Thursday by the Center for Audit Quality (CAQ). For the third consecutive year, 75% of respondents

AICPA Issues Technical Practice Aid on Subsequent Events

The AICPA’s Audit and Attest Standards staff has issued Technical Practice Aid 8700.03, “Auditor’s Responsibilities for Subsequent Events Relative to a Conduit Debt Obligor.” The TPA provides guidance on the effect of FASB Accounting Standards Update no. 2010-09 on ASC Topic 855, Subsequent Events, regarding the auditor’s responsibilities for subsequent

FROM THIS MONTH'S ISSUE

Multi-colored plus signs

Building a better CPA firm: Stepping up service offerings

A key step in business model modernization is determining how to implement services that satisfy clients and employees.

From The Tax Adviser

August 30, 2025

2025 tax software survey

August 30, 2025

Are you doing all you can to keep the cash method for your clients?

July 31, 2025

Current developments in S corporations

July 31, 2025

Paid student-athletes: Tax implications for universities and donors