AICPA Issues Enhancing Audit Quality Report
Highlighting this year’s significant achievements to improve audit quality, the American Institute of Certified Public Accountants (“AICPA”) recently issued Enhancing Audit Quality: 2017 Highlights and Progress (“Report”). The Report lists major accomplishments in areas such as peer review, single audits, and quality control. Separately, the Report addresses evolving talent needs and includes sections concerning the Uniform CPA Examination and Valuation credentials. Download Enhancing Audit Quality: 2017 Highlights and Progress at AICPA.org.
Audit Guides Help IRS Review Nonprofit Organizations
The Internal Revenue Service (“IRS”) wants to help nonprofits and their tax preparers avoid the possibility of being audited. Available for download on the IRS website are Audit Technique Guides for nonprofits exempt under IRC Section 501(c)(3) and other IRC Section 501(c) sub-sections. Used by IRS staff members, the guides give insight into what the IRS examines when deciding whether to audit tax-exempt organizations. More on the IRS’ Audit Technique Guides is available on the Nonprofit Quarterly website. Need help with audits? Contact a member of our Education or Nonprofits group.
Standing Advisory Group Wants PCAOB to Pause on Standard-Setting for Technology Use
With the Public Company Accounting Oversight Board (“PCAOB”) studying auditors’ increased technology and data use, members of its Standing Advisory Group (“SAG”) have asked the board to proceed with caution when drafting new guidance. Referencing member feedback during a meeting last month, PCAOB Deputy Chief Auditor Patrick McNamee said that the SAG wants the board to focus on guidance instead of updating auditing standards. The ever-changing use of technology in audit work is being contributed to the SAG’s stance. SAG members advised the PCAOB to use its inspection findings to assess how accounting firms use technology and data in audits,. Read More.
AICPA Group Seeks Academic Research on Audit Work of Private Companies
The American Institute of Certified Public Accountants’ (“AICPA”) Assurance Research Advisory Group (“ARAG”) is seeking proposals for academic research on the auditing process. Announced by the ARAG on June 1, the research will be used to help the AICPA’s standard-setting efforts for private businesses and the Enhancing Audit Quality initiative. Proposals are due Tuesday, October 6. Grants funding academic research efforts will be announced before February 28, 2018.
NC State Students Complete Cherry Bekaert Audit Methodology Project
Eighty students of North Carolina State University’s Jenkins Master of Accounting Program recently completed a semester-long project to help advance Cherry Bekaert’s audit methodology. Spearheaded by Partner Tara Edwards and Director Jonathan Kraftchick, the class project involved reviewing audit assignments to determine whether the information presented is understandable by Cherry Bekaert’s entry level auditors. Students were given tasks to complete using the same information entry level auditors are given, and then provided feedback to Kraftchick and Edwards. More on the Cherry Bekaert audit methodology project is available on the NC State website.
Auditing Standards Board Outlines Discussions for Upcoming Meeting
Continuing efforts to reformat attestation standards based on the American Institute of Certified Public Accountants’ (“AICPA”) clarity conventions, the AICPA Auditing Standards Board (“the Board”) plans to review comment letters received on the standards’ first four chapters drafts at its upcoming meeting. Scheduled for October 20th-22nd in New York City, the Board will cover Proposed Statement on Standards for Attestation Engagements (SSAE) – Attestation Standards: Clarification and Recodification, which establishes clarified standards objectives and definitions for each standard. Reformatting the standards is part of the AICPA’s Clarity Project that helps make them better to understand and be applied. Along with. Read More.