The Center for Audit Quality has released two new member alerts spotlighting some of the potential risks facing audit firms during the upcoming 2017 audit cycle.
The first alert, Select Auditing Considerations for the 2017 Audit Cycle, describes a number of judgmental and complex areas for auditors, including some already identified by the Public Company Accounting Oversight Board in a recent PCAOB Staff Inspection Brief. They include auditor independence, multinational audits, transitioning to new accounting standards, audit areas potentially affected by economic factors, recurring audit deficiencies, financial reporting areas, and disclosure of engagement partner and other participants in audits under PCAOB Rules 3210 and 3211.
The second CAQ alert, Select Considerations for the 2017 Audit Cycle for Brokers and Dealers, discusses some of the considerations pertaining to audit and attestation engagements for brokers and dealers registered with the Securities and Exchange Commission. Both alerts include questions that auditors should consider when planning and conducting audits.
“The auditing profession is strongly committed to continuous improvement in audit quality for the benefit of investors and the capital markets,” said CAQ executive director Cindy Fornelli in a statement. “These alerts, which address key auditing considerations in an ever-evolving risk environment, reflect that commitment.”