Staff Audit Practice Alert Issued for Going Concern
Reminding auditors to continue abiding by its current standards in spite of recent U.S. GAAP changes related to recognizing a company’s ability to continue as a going concern, the Public Company Accounting Oversight Board (“PCAOB”) has issued Staff Audit Practice Alert No. 13 , Matters Related to the Auditor’s Consideration of a Company’s Ability to Continue as a Going Concern. The alert informs auditors to reference the appropriate financial reporting framework, U.S. GAAP or International Financial Reporting Standards (IFRS), to review management’s going concern evaluation and its related financial statement disclosures. Staff Audit Practice Alert No. 13 also advises auditors to continue using PCAOB AU sec.. Read More.
DoD Inspector General Issues Two Reports on DCAA Quality Control
On August 27, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (MRD) 14-PAS-014(R) , captioned ”Audit Guidance on Removal of Modified GAGAS Statement in Audit Reports”. As background for this MRD, Generally Accepted Government Auditing Standards (GAGAS) require audit organizations to obtain an external peer review at least once every three years. For DCAA, the external reviews are performed by the Department of Defense’s (“DoD”) Inspector General. In August 2009, the Inspector General revoked its previous approval of DCAA’s quality control program. As a consequence, since August 2009, DCAA has been unable to state that it performed its audits in accordance with. Read More.
PCAOB Releases Agenda Ahead of Next Month’s SAG Meeting
Announced ahead of its October 2nd event, the Public Company Accounting Oversight Board (“PCAOB”) has released the agenda for its Standing Advisory Group (“SAG”) meeting in Washington, D.C. Open to the public, the SAG meeting agenda includes panel discussions on possible changes to the standards regarding auditing estimates and fair value measurements. Featuring a panel of investors, auditors and valuation experts, the discussion is intended for reviewing challenges faced by auditors, hearing perspectives from the audit committee and investors, and insight from academic research. The meeting’s agenda also includes PCAOB and global inspection matters, developments in valuation and financial reporting frameworks. Read More.
Exposure Draft for Proposed SSAE on Internal Controls Issued
An exposure draft on proposed Statement on Standards for Attestation Agreements (SSAE), Reporting on an Examination of Controls at a Service Organization Relevant to User Entities’ Internal Control Over Financial Reporting: Clarification and Recodification has been issued by the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board (“the Board”). Issued as part of the Board’s clarity drafting project, the proposed SSAE will replace AT section 801, Reporting on Controls at a Service Organization, and relate to a service auditor’s examination engagements when reporting on controls at organizations that offer services to user entities when such controls could apply. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Audit, Auditing Standards Board "ASB", Clarification, Controls, Exposure Draft, financial reporting, Recodification, Statement on Standards for Attestation Agreements "SSAE"
AICPA Auditing Standards Board Releases Agenda for October Meeting
Hosted at the American Institute of Certified Public Accountants (“AICPA”) offices in New York City, the organization’s Auditing Standards Board (“ASB”) is scheduled to meet October 21st-23rd. The meeting will cover various topics, including Attestation Standards: Clarification and Recodification, and proposed revisions of the first four chapters. Further, the agenda includes a possible revision of AU-C 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern, auditor’s reports, competency model and performance audits. Meeting information and the event’s detailed agenda are available on the AICPA’s website.
AICPA’s Auditing Standards Board Releases Proposed Statement on Auditing Standards
Featuring conforming amendments related to sections in Statement on Auditing Standards (SAS) No. 122, Statements on Auditing Standards: Clarification and Recodification, the American Institute of Certified Public Accountants’ (“AICPA”) Auditing Standards Board has issued an exposure draft for proposed SAS: An Audit of Internal Control Over Financial Reporting That Is Integrated With an Audit of Financial Statements. The Auditing Standards Board decided to remove existing AT section 501 information from the attestation standards and incorporate within generally accepted auditing standards (GAAS) because the attestation requirements required the examination be performed with an audit of the financial statement. Along with the. Read More.
Topics: American Institute of Certified Public Accountants "AICPA", Attestation, Audit, Clarification, financial reporting, Financial Statements, Generally Accepted Auditing Standards "GAAS", Recodification, Statement on Auditing Standards "SAS"