CAQ Board Issues Four Grants for Auditing Research
The Center for Audit Quality’s (“CAQ”) Research Advisory Board grant program recently announced it will fund the following academic research projects focused on how audits are conducted: “How Can Audit Committee Support Improve Auditors’ Application of Professional Skepticism?” by Joseph F. Brazel (North Carolina State University), Anna Gold (Vrije Universiteit Amsterdam), and Tammie Schaefer (University of Missouri – Kansas City) “‘Alexa, Audit Loan Grades’: Enhancing Auditor Reliance on Artificial Intelligence Through Anthropomorphism” by Sean Dennis and Benjamin P. Commerford (University of Kentucky) “Encouraging Relational Thinking to Enhance Auditor Use of Audit Data Analytics Output” by Cassandra Estep, Bright Hong, and. Read More.
PCAOB Members Say Standard-Setting Projects to be Completed
The new Public Company Accounting Oversight Board (“PCAOB”) members say it is probable that some of the projects on the previous board’s standard-setting agenda will be finished. At this week’s meeting with the Standing Advisory Group, PCAOB chairman William Duhnke said that board members are currently reviewing its agenda and working to ensure that existing projects will remain intact. Duhnke noted that before moving forward, however, the PCAOB needs to complete an evaluation of its standard-setting agenda and discuss which projects will receive priority. Significant work has already been completed on three standard-setting projects. Last June, the PCAOB issued Release No. 2017-002, Proposed Auditing Standard—Auditing Accounting Estimates, Including Fair Value Measurements and Proposed Amendments to PCAOB. Read More.
Data Collection Form Revisions Proposed
In a Federal Register notice issued on April 3, the Federal Audit Clearinghouse (“FAC”) is proposing amendments to the Data Collection Form (“DCF”). Titled Proposed Information Collection; Comment Request; Data Collection Form for Reporting on Audits of States, Local Governments, Indian Tribes, Institutions of Higher Education, and Non-Profit Organizations , the notice outlines four significant changes to the Data Collection. The final Form changes would be effective for fiscal periods ending in 2019, 2020 and 2021. Those proposed changes include: Expanding the audit finding information that auditors include in the DCF to contain the audit finding’s actual text; Asking auditors to state whether they sent a written communication to the auditee concerning any non-audit finding issues should be directed to those responsible for governance matters;. Read More.
PCAOB Proposal to Address Auditing Accounting Estimates
A new proposal by the Public Company Accounting Oversight Board (“PCAOB”) seeks to strengthen the applicable requirements for auditing accounting estimates. Issued as Proposed Auditing Standard for Auditing Accounting Estimates, Including Fair Value Measurements, the proposal advises auditors to use professional skepticism and give added attention to possible management bias while auditing accounting estimates. Auditors have had issues auditing some accounting estimates, causing PCAOB inspectors to flag deficiencies at both small and large audit firms. Such deficiencies have raised concerns on auditors’ application of professional skepticism and their consideration of possible management bias. In response, the PCAOB proposes a new. Read More.
Topics: and Investments in Securities (AS 2503), Auditing, Auditing Accounting Estimates (AS 2501), Auditing Derivative Instruments, Auditing Fair Value Measurements and Disclosures (AS 2502), Fair Value Measurements, Hedging Activities, PCAOB, Public Company Accounting Oversight Board "PCAOB"
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.
Next PCAOB Small Business Forum Set for Thursday
Next PCAOB Small Business Forum Set for Thursday Scheduled for Thursday, the Public Company Accounting Oversight Board (“PCAOB”) will hold its next forum on “Auditing in the Small Business Environment.” Taking place in New York City, the event is part of the PCAOB’s 2014 series on small business forums , and offers PCAOB members and staff the chance to hear comments and questions from auditors. Updated annually, the forum’s agenda shares essential information regarding the PCAOB’s activities with registered accounting firms that audit public companies operating in the small business community. Thursday’s agenda will feature information such as enforcement and U.S. Securities and Exchange Commission updates, the latest on. Read More.