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PCAOB Issues Staff Inspection Brief on Audit Risks

The latest Staff Inspection Brief by the Public Company Accounting Oversight Board (“PCAOB”) features information on the agency’s ongoing inspections of auditors of public companies and other issuers. Announced on August 30, the Staff Inspection Brief provides guidance on audit risks that PCAOB inspectors seek to address. The brief also encourages auditors to improve audit quality. In addition, the Staff Inspection Brief highlights the issues PCAOB inspectors consider during auditor inspections. Such issues include whether the auditor was cognizant of how the issuer created its estimates, dealt with forthcoming accounting changes, and used proper software tools to review data that met audit objectives.

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AICPA Releases Updates to AAG Standards and Audit Risk Alert

Published on June 26th, the American Institute of Certified Public Accountants (“AICPA”) issued updates to five Audit and Accounting Guides (“AAG”). The AAG updates include the following: Compilation and Review Engagements now offers interpretive guidance on recent adjustments to the Statements on Standards for Accounting and Review Services for compilation and review engagements. The Construction Contractors update includes simplified versions of the Auditing Standards Board’s audit standards and Professional Ethics Executive Committee’s Ethics Code of Professional Conduct. Investment Companies reflects modifications to the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (ASU) No. 2013-08, Financial Services-Investment Companies (Topic 946): Amendments to the Scope, Measurement, and Disclosure Requirements, the. Read More.

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