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.
Auditing
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.
ASB aligns with other US standard setters on materiality
The AICPA Auditing Standards Board has amended its concept of materiality to match the definition used by the U.S. judicial system and other US standard setters.
New standard adds flexibility for agreed-upon procedures
The barriers preventing CPAs from performing engagements providing certain agreed-upon procedures were removed when the AICPA Auditing Standards Board issued a standard providing more flexibility to practitioners.
Independence and information systems services
A recently issued independence interpretation contains guidance for CPAs’ interactions with attest clients’ information systems.
Auditors get high marks, but non-US market optimism sags
The profession is seen as honest and independent.
New TQAs discuss 2019 Compliance Supplement’s guidance for performing single audits
The nonauthoritative guidance addresses recent revisions.
Valuation in spotlight as SEC mulls expanding investment opportunities
The SEC is considering expanding opportunities for nonaccredited investors. That means more investors may be relying on private-equity fund valuations and auditors’ assessments of those valuations.
Demand for sustainability assurance is growing
Seventy percent of companies participating in a survey by The Conference Board that obtain assurance on their sustainability information said the need for such assurance will increase over the next five years.
How audit committees can improve disclosure
Although audit committees increasingly are providing transparency on certain key metrics, a new report shows that there are opportunities to provide more useful disclosures.
Determining materiality for nonquantitative subject matters
Materiality is a concern for engagements in which measurement is a challenge.
Proposal would align AU-C 800 series with SAS No. 134
The change is meant to enhance auditor reporting.
ASB addresses challenges in auditing accounting estimates
A new standard would supersede SAS No. 122.
PCAOB issues staff guidance on auditing estimates, specialists
The four documents can aid implementation.
ASB addresses compliance with GAAS, PCAOB standards
An auditing interpretation issued by the AICPA Auditing Standards Board provides auditors with guidance on how to comply with AU-C Section 700A as well as the PCAOB’s standards on critical audit matters.
