Advertisement
TOPICS

Audit & assurance

News Highlights for May 2010

The Auditing Standards Board recently issued six clarified Statements on Auditing Standards related to risk assessment resulting from its clarity project, through which all of its auditing standards will be redrafted over the next one to two years. The board also issued additional proposed SASs. The goal of the clarity

Auditing

  The AICPA’s Audit and Attest Standards staff has issued Technical Practice Aid (TPA) 9110.16, Example Reports on Federal Deposit Insurance Corporation Loss Sharing Purchase and Assumption Transactions, to provide guidance to independent auditors on the type of report they might have to give to the FDIC regarding a loss-sharing

Changes on Tap for Compilation and Review Standards

Significant changes to the standards for compilation and review engagements will soon take effect. The AICPA’s Accounting and Review Services Committee (ARSC) issued Statement on Standards for Accounting and Review Services no. 19, Compilation and Review Engagements, in December. The standard’s effective date is for compilations and reviews of financial

PCAOB Reminds Auditors of Requirements Related to Unusual Transactions

The PCAOB on Wednesday issued an alert reminding public company auditors of their responsibilities related to the risk of material misstatements stemming from error or fraud associated with significant unusual transactions. “The PCAOB’s message to auditors, in this challenging economic environment, has consistently emphasized attention to audit risk and adherence

Auditing

 The SEC approved Auditing Standard no. 7, Engagement Quality Review. The standard is effective for engagement quality reviews of audits and interim reviews for fiscal years that began on or after Dec. 15, 2009. Accordingly, for interim reviews of public companies that file financial reports on a calendar-year basis, the

PCAOB Seeks Comment on Proposed Auditing Standard on Communications

The PCAOB on Monday proposed for comment an auditing standard, Communications with Audit Committees, and a series of related amendments to its interim standards. The proposal includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to

Comment Deadlines Nearing for Certain Clarified Exposure Drafts

The Auditing Standards Board recently issued additional Proposed Statements on Auditing Standards resulting from its clarity project, through which all of its auditing standards will be redrafted over the next one to two years.  The goal of the clarity project is to make auditing standards easier to read, understand and

Auditing

  The PCAOB on Dec. 17 voted to repropose for comment seven auditing standards and related amendments that collectively would revise the requirements for assessing risk in an audit. The PCAOB initially proposed the standards on Oct. 21, 2008. The reproposed standards include changes made in response to comments received

ASB Issues Compliance Audits Standard

The Auditing Standards Board has issued Statement on Auditing Standards no. 117, Compliance Audits. The standard supersedes SAS no. 74, Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance. The new guidance reflects changes in the compliance audit environment and incorporates the risk assessment standards.

AICPA Issues Guidance on Subsequent Events

New guidance is available on the effect of FASB’s Accounting Standards Codification Topic 855, Subsequent Events, in compilation and review engagements. The AICPA’s Audit and Attest Standards Team issued a new Technical Inquiry and Reply (TPA) 9150.26, “The Accountant’s Responsibilities for Subsequent Events in Compilation and Review Engagements.” According to

Recovery Act Funds Spark Auditing Interpretations

Under the American Recovery and Reinvestment Act of 2009, the federal government is passing down almost $300 billion in additional funds to governments and nonprofit organizations. Much of the funding is subject to audits under Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit

PCAOB, CAQ Offer Academic Research Funds

The PCAOB and the AICPA-affiliated Center for Audit Quality (CAQ) are offering funds to support academic research on auditing and oversight topics. The PCAOB’s Academic Fellowship Program is seeking an experienced accounting researcher and academic, with an active interest in auditing and oversight matters, to serve as an academic fellow at the

New SSARS to Usher in Big Changes for Compilation and Review Engagements

The AICPA issued SSARS no. 19, Compilation and Review Engagements. Significant improvements brought about by the standard include:   The introduction of the term review evidence. This change to the review literature clarifies that a review requires the accumulation of review evidence to provide a reasonable basis for obtaining limited

Highlights

The AICPA issued SSARS no. 19, Compilation and Review Engagements. Significant improvements brought about by the standard include:   The introduction of the term review evidence. This change to the review literature clarifies that a review requires the accumulation of review evidence to provide a reasonable basis for obtaining limited

International Assurance Standard Released for Service Organizations, U.S. Equivalent Slated for Vote in January

The International Auditing and Assurance Standards Board (IAASB) on Friday released a new standard that addresses reports on the description, design and operating effectiveness of controls relating to outsourced services ranging from assisting with processing transactions to performing one or more business functions. International Standard on Assurance Engagements (ISAE) 3402,

House Passes Financial Regulatory Reform Bill

House lawmakers voted Friday to approve The Wall Street Reform and Consumer Protection Act, a series of financial regulatory measures. The AICPA advocated for the profession on several provisions in the bill. The bill gives the PCAOB authority to inspect and regulate audits of all broker-dealers. It gives the PCAOB

Auditing

The PCAOB postponed the effective date for registered public accounting firms required to report under its new rules to Dec. 31, 2009, from the previous date of Oct. 12, in order to resolve technical issues related to deploying the board’s new Web-based system for processing and publishing filings on the

Risk-Based Audit Best Practices

The aim of the risk assessment auditing standards was to improve the quality and effectiveness of audits by substantially changing audit practice. Statements on Auditing Standards nos. 104–111 provide increased rigor to the audit process in a number of key areas including the assessments of inherent and control risks and

Auditing at the Speed of Change

Henry Keizer is the global head of audit for KPMG International and U.S. vice chair of audit for KPMG LLP. He also is a member of the AICPA board of directors. He spoke with JofA Publisher and Editor-in-Chief Joanne Fiore following the AICPA’s board of directors meeting in August and

FROM THIS MONTH'S ISSUE

AI risks CPAs should know

Are you ready for the AI revolution in accounting? This JofA Technology Q&A article explores the top risks CPAs face—from hallucinations to deepfakes—and ways to mitigate them.

From The Tax Adviser

January 31, 2026

Trust distributions in kind and the Sec. 643(e)(3) election

January 31, 2026

Effects of the OBBBA on higher education

December 31, 2025

Practical tax advice for businesses as a result of the OBBBA

November 30, 2025

How a CPA and wealth adviser partnership can guide families through transition