The Center for Audit Quality published two new member alerts to help public company auditing firms quickly and proactively address potential risks.

The first alert, Selecting Auditing Considerations for the 2016 Audit Cycle, focuses on some of the more judgmental or complex audit areas for the upcoming audit cycle, including those identified by the Public Company Accounting Oversight Board through its inspection process and published in recent PCAOB Staff Inspection Briefs. The alert covers:

  • Improving Transparency through Disclosure of Engagement Partner and Certain Other Participants
  • Improper Alteration of Audit Documentation
  • Effective Communication with Audit Committees
  • Assessing and Responding to Risks of Material Misstatement
  • Internal Control over Financial Reporting (ICFR)
  • Segment Identification and Disclosure
  • Going Concern
  • Additional Considerations for the 2016 Audit Cycle

The second alert, Select Auditing Considerations for the 2016 Audit Cycle for Brokers and Dealers, has considerations for the 2016 audit cycle that could be relevant for audit and attestation engagements of brokers and dealers registered with the U.S. Securities and Exchange Commission. The alert includes areas that have recently been the subject of attention by the PCAOB’s inspection process.

“The CAQ and the public company auditing profession are deeply committed to continuously improving audit quality in order to better serve investors and capital markets,” stated CAQ executive director Cindy Fornelli. “As risks and regulatory priorities evolve, the CAQ will continue to issue alerts and disseminate the latest resources for the benefit of our members and others.”

The member alerts should not be relied on as definitive or all-inclusive, and should be read in conjunction with the applicable rules, standards and guidance in their entirety, the CAQ cautioned.

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

Don't have an account? Register for Free Unlimited Access