The Center for Audit Quality has released two new member alerts to help public company auditing firms address potential risks during the upcoming audit cycle.
The first of these alerts, Select Auditing Considerations for the 2015 Audit Cycle, reminds firms of important auditing considerations for the 2015 audit cycle. The document discusses some of the more judgmental or complex audit areas. The CAQ acknowledged that many of these have also been included in a recent PCAOB Staff Inspection Brief that was published this month.
Select Auditing Considerations for the 2015 Audit Cycle covers the following topics:
1. Professional Skepticism
2. Internal Control Over Financial Reporting (ICFR)
3. Risk Assessment and Audit Planning
4. Supervision of Other Auditors and Multi-Location Audit Engagements
5. Testing Issuer-Prepared Data and Reports
7. Revenue recognition
8. Auditing Accounting Estimates, Including Fair Value Measurements
9. Related Parties and Significant Unusual Transactions
The CAQ has also issued a companion alert, Select Considerations for the 2015 Audit Cycle for Brokers and Dealers. More than 120 of the CAQ’s member firms audit brokers and dealers. It addresses another recent PCAOB Staff Inspection Brief on 2015 Inspections of Auditors of Brokers and Dealers and provides links to select guidance on inspection deficiencies identified by the PCAOB.
“These alerts reflect the public company auditing profession’s strong commitment to continuously strengthening audit quality,” said CAQ executive director Cindy Fornelli in a statement. “As risks and regulatory priorities evolve, the CAQ will continue to update these resources regularly for the benefit of our members and others.”
The CAQ pointed out that while its member alerts highlight certain areas for consideration, they should not be relied upon as definitive or all-inclusive, and should be read in conjunction with the applicable rules, standards and guidance in their entirety.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access