CAQ Executive Director to Retire
Cindy Fornelli, executive director of the Center for Audit Quality, has announced that she will retire in the spring of next year. As the CAQ’s first executive director, Fornelli has spent the past 12 years helping carry out the organization’s vision for enhancing investor confidence and public trust in the global capital markets. Accomplishments during her tenure include helping advance audit quality, fighting financial reporting fraud, and encouraging groundbreaking academic research. At this time, plans for Fornelli’s successor are yet to be announced. Click here to read Fornelli’s letter announcing her retirement.
CAQ Issues Audit Planning Alert
The Center for Audit Quality (“CAQ”) has issued an alert to improve audit quality and assist in the planning of 2018 audits. Released as Audit Planning Alert for Auditors of Brokers and Dealers , the alert outlines questions auditors of brokers and dealers should consider when preparing audit and attestation engagements. It also focuses on the following areas: Auditing revenue; Auditing related party transactions; Auditing the supplemental information; Performing examination engagements; and Performing review engagements. While certain areas are highlighted in this alert, the CAQ cautions that the guidance should not be considered definitive or all-inclusive. The CAQ advises that the alert must be read alongside the appropriate rules,. Read More.
PCAOB Standard-Setting Update as of March 31, 2018
Available on the Public Company Accounting Oversight Board’s (“PCAOB”) website is the organization’s most recent standard-setting agenda. Updated as of March 31, the standard-setting agenda features the statuses of the following current PCAOB projects: Auditing Accounting Estimates, Including Fair Value Measurements: Developing a recommendation for action. The Auditor’s Use of the Work of Specialists: Developing a recommendation for action. Supervision of Audits Involving Other Auditors: Reviewing comments and deciding the next steps. Going concern: Outreach, monitoring, and research. The PCAOB also has projects on its research agenda related to: Quality control standards; Changes in how data and technology in audits. Read More.
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.