New standard provides risk-based approach to group audits
The AICPA Auditing Standards Board issues SAS No. 149 and SQMS No. 3. SAS No. 149 introduces the term “referred-to auditor” and revises the definition of component auditor.
Audit & Assurance
Improve audit sampling efficiency with Excel’s Solver tool
Artificial intelligence capability can significantly reduce the time and effort auditors devote to sampling estimation tasks.
Opportunity knocks for firms as ESG reporting, assurance levels rise
More large companies than ever are reporting ESG data and obtaining assurance, according to a global survey, prompting many U.S. audit firms to explore how to best position themselves for an increased role.
PCAOB offers new guidance for quality control remediation
Newly published insights can help audit firms avoid public disclosure of quality control criticisms issued by the PCAOB.
Auditing best practices: What academic fraud research reveals
Complying with AU-C Section 240, Consideration of Fraud in a Financial Statement Audit, when conducting financial statement audits challenges practitioners’ professional skills and knowledge regarding identification, assessment, and response to fraud risks. Academic research reveals best practices for enhancing fraud-related financial audit performance.
Audit tips from PCAOB inspections leader
The director of the PCAOB inspections team recently issued a call to action for auditors at the AICPA & CIMA Conference on Current SEC and PCAOB Developments.
PCAOB proposes new auditing standard
The PCAOB issued a proposed new standard that is designed to strengthen and modernize the requirements for the auditor’s use of confirmation.
5 ways firms can use technology to transform audits
Technology has been transforming audits for years, and that trend will only accelerate with the Statement on Auditing Standards (SAS) No. 142, Audit Evidence, which took effect on Dec. 15, 2022.
One size does not fit all clients: SAS No. 145 on scalability
Understand the opportunities to maximize efficiency in your audits of less-complex entities. SAS No. 145 will tell you that risk assessment is not a one-size-fits-all proposition and provides opportunities to scale work throughout the process.
PCAOB gains ‘complete access’ to audit firms in China
The PCAOB confirms that China is honoring an agreement signed in August that allows the board free rein to inspect public companies that trade on the U.S. capital markets.
Quiz: Test your remote audit knowledge
Remote audits are the new norm for firms for many strategic reasons. They may save time and costs, reduce travel, or boost employee retention, among other advantages. Test your remote audit knowledge and get resources for your next remote audit.
PCAOB report analyzes impact of estimates and specialists requirements
The PCAOB released a report addressing the impact of 2018 standards related to auditing accounting estimates and the auditor’s use of the work of specialists.
PCAOB report: Audit deficiencies increase in 2021
Deficiencies in a relatively new area of reporting — critical audit matters — contribute to the increase, but the board also sheds light on several good practices.
PCAOB report analyzes reporting of critical audit matters
The PCAOB finds that progress is being made related to the reporting of critical audit matters but reminds auditors of the board’s expectations.
Audit committee disclosures increase, right along with workload
A Center for Audit Quality report reveals an increase in public company audit committee disclosures, particularly related to cybersecurity, while an accompanying report aims to help audit committees manage their growing list of responsibilities.
PCAOB proposes new quality control standards
Public comments sought on quality control standards that incorporate standards established by the AICPA and the IAASB.
National taxpayer advocate has concerns about $400,000 audit promise
National Taxpayer Advocate Erin Collins expressed concern for voluntary compliance amid Treasury’s promise that increased IRS funding will not be used to audit people earning under $400,000. She spoke during a session at the annual AICPA & CIMA National Tax Conference.
Quiz: What do you know? Inherent risk in SAS No. 145
Understanding and evaluating inherent risk will remain a critical piece of your audit risk assessment process, and SAS No. 145 has brought a number of changes to enhance clarity and audit effectiveness.
Resources for organizations requiring an audit related to COVID-19 relief
AICPA & CIMA tools can assist organizations new to single audits or similar compliance engagements.
Inherent risk and SAS No. 145: New concepts and requirements
New inherent risk factors introduced by SAS No. 145 aim to assist in risk identification. Understand how the changes will affect your 2023 audits.
