Performing an audit

The scoop on group audits: You may have them, even though you think you don’t

As Vince Lombardi said, “Individual commitment to a group effort—that is what makes a team work, a company work, a society work, a civilization work.” I would add to this that an individual firm’s commitment to group audit considerations makes audit planning work. Simply stated, group audits are audits of

ASB issues clarified auditing standard on using the work of internal auditors

With the release of a new auditing standard addressing the external auditor’s responsibilities if using the work of internal auditors, the AICPA Auditing Standards Board has completed the clarity redrafting of its final AU section in AICPA Professional Standards. Developed using International Standard on Auditing 610 (Revised 2013), Using the

PCAOB extends comment period on engagement partner ID proposal

The PCAOB has extended the comment period on its reproposed standard that would require the engagement partner and certain other participants in the audit to be identified in the audit report. The new deadline is March 17; the original deadline was Feb. 3. The board reproposed the amendments in December.

ASB exposes additional clarified standards as part of attestation clarity project

Changes proposed Tuesday by the AICPA Auditing Standards Board (ASB) would restructure the content of several important attestation standards. The ASB has issued a second exposure draft as a result of the attestation clarity project. The exposure draft contains three proposed clarified subject-matter-specific standards. Proposed Statement on Standards for Attestation

TPA addresses use of current auditing standards for audits of prior periods

The AICPA has issued nonauthoritative guidance addressing the use of current auditing standards for audits of prior periods. According to Technical Question and Answer (TPA) 8100.03, when an auditor is engaged to perform an audit of financial statements that are as of or for a period that ended prior to

PCAOB to consider quality-control standard

Audit firms’ quality controls will be the subject of PCAOB discussion in 2014 that could lead to a new auditing standard, board Chief Auditor and Director of Professional Standards Martin Baumann said Tuesday. The PCAOB plans to issue a concept release seeking comment on ways to address audit firm quality

PCAOB seeks improvement in engagement quality reviews

A PCAOB report released Friday instructs audit firms to take steps to ensure that engagement quality reviews detect the audit deficiencies they are meant to identify. Although firms’ methodologies reviewed by the PCAOB were generally consistent with the requirements of Auditing Standard No. 7, Engagement Quality Review, the report says

When the rules and the law no longer agree

In 2012, a form required by the New York City Tax Commission left auditors in a quandary. Recent changes to GAAS that revised the wording of the auditor’s report had not been reflected in the form. As a result, the form required auditors to submit a report to the Tax

PCAOB standard for auditing revenue may be on the horizon

Auditing revenue will need to be an area of focus for PCAOB standard setting in the near future, PCAOB member Jay Hanson said in a speech Monday. FASB and the International Accounting Standards Board are in the closing stages of developing a converged financial reporting standard for revenue recognition. The

PCAOB continues focus on audits of internal control over financial reporting

The PCAOB maintained its focus on audits of internal control over financial reporting (ICFR) Thursday by issuing its second report in 11 months on the subject. Staff Audit Practice Alert No. 11, Considerations for Audits of Internal Control Over Financial Reporting, discusses application of PCAOB standards to audits of internal

PCAOB approves standards for auditors of broker-dealers

The PCAOB on Thursday approved new standards for auditors of brokers and dealers. Two new attestation standards are designed to help protect customer funds by establishing rules for examinations and reviews of compliance information that broker-dealers submit to the SEC. A new auditing standard applies to procedures performed and reporting

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

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 exposes clarified auditing standard on internal audit

The Auditing Standards Board (ASB) has exposed a new, clarified standard that applies to use of the work of internal auditors. With the issuance of the Proposed Statement on Auditing Standards (SAS), Using the Work of Internal Auditors, the ASB has completed the clarity project redrafting of its last unclarified

PCAOB reproposes related-parties auditing standard

The PCAOB on Tuesday reproposed an auditing standard and amendments designed to improve the quality of auditing of related-party transactions and significant unusual transactions. The reproposed standard is designed to increase the auditor’s focus on the evaluation of how a company identifies, accounts for, and discloses its relationships and transactions

PCAOB to consider related-parties re-proposal

The PCAOB will meet Tuesday to consider re-proposing an auditing standard on related parties. PCAOB member Jay Hanson said Thursday that the board is making the second proposal in response to comments it received on the first proposal, which was made Feb. 28, 2012. More comments will be sought on

New TPAs provide guidance for auditors

The AICPA has issued nonauthoritative guidance in five Technical Question and Answer (TPA) releases, which are available on the AICPA website. TPA 9110.22 provides guidance for auditors when an entity’s financial statements are audited in accordance with generally accepted auditing standards and Government Auditing Standards. When both standards are used,

Auditing

Proposed reforms designed to streamline and improve the way the federal government administers more than $600 billion in grants annually have been published 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 attempting to make auditing standards easier to navigate

The PCAOB on Tuesday 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. The board

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How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.