2018 NDAA: Changes to TINA Threshold and Incurred Cost Audits
In November, the conference committee for the National Defense Authorization Act (“NDAA”) for fiscal year 2018 completed one of the final steps in the NDAA process filing its report reconciling the differences between the House version and the Senate version of the legislation. Shortly after the reports were reconciled, the conference report was officially enacted into law as the fiscal year 2018 NDAA. This bill authorizes fiscal year 2018 appropriations and sets forth policies for Department of Defense (“DOD”) programs and activities. One of the major changes in the fiscal year 2018 NDAA, Section 811, is the increase in the. Read More.
No More DCAA Performing ICS Audits?
No more Defense Contract Audit Agency (“DCAA”) auditors auditing your company’s incurred cost submission? It could happen! As a result of the 2018 National Defense Authorization Act (“NDAA”) signed by President Trump on December 12, 2017, it is a real possibility for an independent accounting firm to audit your incurred cost submission instead of auditors from the DCAA. Under the NDAA, which outlines defense spending priorities for the new fiscal year and established federal funding levels, there is a provision for the Department of Defense (“DoD”) to start using private auditors to perform some incurred cost audits. The idea is. Read More.
Topics: 2018 National Defense Authorization Act, audits, Defense Contract Audit Agency "DCAA", Department of Defense "DoD", Generally Accepted Government Auditing Standards "GAGAS", Incurred Cost Submission "ICS"
PCAOB Standard-Setting Update as of December 31, 2017
The following reflects the Public Company Accounting Oversight Board’s (“PCAOB”) updated standard-setting agenda as of December 31, 2017: Auditing Accounting Estimates, Including Fair Value Measurements: Considering a recommendation for the next PCAOB action. The Auditor’s Use of the Work of Specialists: Considering a recommendation for the next PCAOB action. Supervision of Audits Involving Other Auditors: Reviewing comments on the supplemental request for comments and planning the next steps. Going concern: Covering outreach, monitoring, and research efforts. Along with the release of its revised standard-setting agenda, the PCAOB has added four projects to its research agenda. The projects involve quality control standards, changes in the use of data and technology in audits, the auditor’s role. Read More.
PCAOB Staff Inspection Brief Reveals Audit Problems Continue
Public Company Accounting Oversight Board (“PCAOB”) inspectors continue to find the same issues during accounting firm inspections that were discovered in previous years. In its 18-page Staff Inspection Brief: Preview of Observations from 2016 Inspections of Auditors of Issuers, the PCAOB identified the following recurring audit deficiencies last year: Auditors’ assessments and responses to the risk of material misstatements Audits of internal controls over financial reporting (“ICFR”) Audits of accounting estimates such as fair value measurements Of the three audit deficiencies identified, the audits of internal controls were the most cited problem among accounting firms. The more common ICFR deficiencies. Read More.
PCAOB Considering Revenue Recognition Interpretive Guidance for Auditors
Auditors could receive interpretive guidance on the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard. Last month, Public Company Accounting Oversight Board (“PCAOB”) Chief Auditor Martin Baumann said a project is in the works to determine what type of guide the board should release concerning Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606). To help public companies implement ASU No. 2014-09, Baumann remarked that the PCAOB is considering releasing an Audit Practice Alert. The PCAOB staff has already reviewed Staff Audit Practice Alert (“APA”) No. 12, Matters Related to Auditing Revenue in an Audit of. Read More.
Topics: Accounting Standards Update "ASU", Audit Practice Alert, audits, FASB, FASB Accounting Standards Codification, Financial Accounting Standards Board "FASB", PCAOB, Public Company Accounting Oversight Board "PCAOB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Staff Audit Practice Alert
PCAOB Proposes Enhancements to Lead Auditor’s Oversight of Other Auditors
The Public Company Accounting Oversight Board (“PCAOB”) issued a proposal to strengthen the requirements for a lead auditor’s supervision of other auditors. Offering a more consistent approach, the proposal is intended to increase a lead auditor’s oversight and enhance its ability to avoid or identify deficiencies in the other auditors’ work. The proposal also introduces a new standard and features amendments to existing standards, such as the following: Requiring additional specific procedures that prompt the lead auditor to boost its involvement through increased communications and tougher evaluations of other auditors’ qualifications and work. Clarifying that, to serve as lead auditor,. Read More.