Auditors face many new challenges as they work through the coronavirus pandemic. The AICPA Center for Plain English Accounting has posted new guidance on handling those challenges.
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Audit & assurance
How auditors can test inventory without a site visit
Inventory counts for March 31 year-end financial statements are a challenge for auditors during the coronavirus outbreak. But there are a few methods that can provide sufficient appropriate evidence of inventory even when the auditor can’t make a site visit.
Remote auditing comes to forefront during pandemic
Remote audit procedures, which have gained in popularity in recent years because of technological advancements, may provide options for auditors in this environment.
PCAOB provides firms opportunity for inspection relief
A relief period of up to 45 days from PCAOB inspections will be available to audit firms that request relief. Firms that wish to use all or part of the 45-day period can reach out to their designated PCAOB inspections point of contact.
PCAOB’s domestic inspections to continue remotely
The Public Company Accounting Oversight Board will continue its inspections of domestic audit firms on a remote basis in response to the coronavirus outbreak.
How the coronavirus may affect financial reporting and auditing
The coronavirus pandemic looks likely to create major challenges for the preparation of financial statements, both for the current quarter and also for annual financial reports and audits over the next year.
SEC exempts certain companies from ICFR attestation requirement
The SEC issued amendments that exempt smaller reporting companies with less than $100 million in revenue from the requirement to obtain attestation of their internal control over financial reporting from an outside auditor.
AU-C 800 series amended to conform with auditor reporting standard
The AICPA Auditing Standards Board issued new guidance that is intended to align the AU-C 800 series with the board’s new standard on auditor reporting.
Lease accounting standard requires new auditor judgments
Auditors need to evaluate new processes and controls in determining whether clients and companies are complying with FASB’s new lease accounting standard.
ARSC further converges SSARSs with international standards and aligns closer with GAAS
The AICPA’s Accounting and Review Services Committee issued a new Statement on Standards for Accounting and Review Services (SSARS) that further converges the standards for reviews of financial statements in AICPA Professional Standards with international standards for such engagements.
Managing risk related to consulting engagements
Consulting can be a lucrative and rewarding addition to your firm’s offerings. Consider these risks and steps before taking on a consulting engagement.
ASB issues guidance on Global Investment Performance Standards
The AICPA Auditing Standards Board has issued guidance for practitioners performing verification or performance examination engagements pursuant to the Global Investment Performance Standards.
Why audit firm leaders need to practice what they preach
Audit quality is improved when firm leaders personally model the exemplary behaviors that they say they value, according to a new study backed by the AICPA Assurance Research Advisory Group.
How firms are delivering value with audit data analytics
Here’s how auditors can prepare themselves for this work, and what they need to explain to audit committees as they incorporate analytics into engagements.
Accounting for cloud computing: What you need to know
Get insight on implementing the updated accounting rules related to cloud computing implementation costs associated with a service arrangement, which are in effect for public companies now and will be required for all other entities later this year.
SEC proposes updating auditor independence rules
An SEC proposal is designed to amend rules that indicate auditor independence breaches in situations when no substantial threat to independence exists.
How auditors can stay independent while advising on revenue recognition
Some private company clients are having difficulty implementing FASB’s revenue recognition standard. CPAs who audit those clients’ financial statements need to proceed carefully to maintain their independence.
PCAOB’s 2020 inspection focus and audit quality tips revealed
The PCAOB’s inspections of audit firms in 2020 will continue to focus on areas that have been challenging for firms in recent years, George Botic, CPA, the PCAOB’s director of Registration and Inspections.
ASB proposes conforming amendments, addresses practice issues
Sections of the ASB’s codification would be amended under a proposal to conform with recently issued standards on auditor reporting and the auditor’s responsibilities relating to other information included in annual reports.
How critical audit matters relate to critical accounting estimates
Auditors of the largest public companies have included critical audit matters in their reports for the first time. Here are some of the SEC’s observations based on those reports.
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