With new quality management standards, standard setters are providing opportunities for audit firms to drive continuous improvement in their engagements.
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TOPICS / AUDIT & ASSURANCE
Audit
New approach to quality management proposed by ASB
The AICPA Auditing Standards Board proposed a new approach to quality management that will include scalable, risk-based assessments that can be tailored to the circumstances of an individual firm.
Advice from the experts: Defending audit claims
Learn what CPA firms can and cannot do to assist those who defend auditors against professional liability claims.
Quiz: Are you prepared to audit fraud risk during a pandemic?
With so many organizations financially affected by the COVID-19 pandemic and making an abrupt shift to remote working, there’s a perfect storm for increased fraud in financial statements. Take this quiz to see if you know your responsibilities for auditing fraud risks in your engagements.
Tips for auditing in a COVID-19 environment
The coronavirus pandemic has dramatically disrupted the focus and procedures involved in many audits. These tips provide best practices, fraud considerations and new procedures practitioners may wish to use.
Why the best critical audit matter disclosures use entity-specific info
Critical audit matters have more value when they provide entity-specific language and avoid boilerplate, experts say.
PCAOB changes 2021 inspection focus areas as a result of COVID-19
PCAOB inspectors will focus more in 2021 on industries and audit areas that have experienced disruption as a result of the coronavirus pandemic. Inspectors also will try to become more unpredictable in the audits and areas they examine.
PCAOB amends independence requirements to align with SEC changes
The Public Company Accounting Oversight Board issued amendments that are designed to align its independence requirements with SEC rules that were updated in 2019 and 2020.
ASB proposal addresses auditing of fair value estimates of financial instruments
A proposed standard issued by the AICPA Auditing Standards Board would give practitioners more guidance on auditing management’s estimates of fair value, including on the use of pricing services.
9 tips for successful auditing of revenue recognition
A new standard and the disruption caused by the coronavirus pandemic make auditing revenue recognition difficult. These tips can help.
Developing a strategic audit plan
This article outlines steps CPAs should consider when developing strategic audit plans for their own clients.
SEC aims to reduce unnecessary auditor independence red flags
The SEC adopted amendments that are designed to reduce situations that trigger independence rule violations in situations that don’t necessarily impair an auditor’s objectivity or impartiality.
Proposal aims to enhance auditors’ risk assessment process
A proposed standard by the AICPA Auditing Standards Board is designed to enhance auditors’ processes for identifying and responding to the risks of material misstatement in financial statements.
Audit evidence standard would be updated under proposal
Issues such as the use of emerging technologies and the application of professional skepticism are addressed in a new audit evidence standard.
PCAOB issues staff guidance on auditing estimates, specialists
The PCAOB released staff guidance documents that are designed to help auditors implement the board’s new standards and amendments on auditing accounting estimates and the auditor’s use of the work of specialists.
Audit evidence standard would be updated under proposal
The ASB issued a proposal that would update its audit evidence standard to address issues such as emerging technologies and the application of professional skepticism.
ASB enhances communication in auditors’ reports
The AICPA Auditing Standards Board issued standards that are designed to improve auditors’ ability to communicate in auditors’ reports and align generally accepted auditing standards with those of other standard-setting bodies.
PCAOB to consider rules on auditing estimates, use of specialists
The PCAOB will meet to consider adopting new rules for public company auditors on auditing accounting estimates, including fair value measurements, and on the use of specialists.
What ‘dry runs’ reveal about critical audit matters
The new reporting model for public company audits requires practitioners to disclose “critical audit matters” that arise during their work. A new Center for Audit Quality report examines the results of “dry runs” that are designed to help firms develop methodologies for determining and reporting critical audit matters.
Strategies for quality work in single audits
Careful testing and thorough documentation are among the keys for quality single audit performance described by Laurie De Armond, CPA, in her summary of observations from the AICPA Not-for-Profit Industry Conference.
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