Accounting
Alerts Warn of Risks in Upcoming Audit Cycle
The Center for Audit Quality (CAQ) has published two new member alerts to help public company auditing firms address potential risks during the upcoming 2017 audit cycle.
Oct. 12, 2017
The Center for Audit Quality (CAQ) has published two new member alerts to help public company auditing firms address potential risks during the upcoming 2017 audit cycle.
“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. “These alerts, which address key auditing considerations in an ever-evolving risk environment, reflect that commitment.”
The first of these alerts, Select Auditing Considerations for the 2017 Audit Cycle, identifies and discusses some of the more judgmental or complex audit areas for the upcoming audit cycle, including some of those identified by the Public Company Accounting Oversight Board (PCAOB) through its inspection process and published in the recent PCAOB Staff Inspection Brief.
The alert focuses on many important topics, including the following:
- Auditor Independence
- Multinational Audits
- Transitioning to New Accounting Standards
- Audit Areas Potentially Affected by Economic Factors
- Recurring Audit Deficiencies
- Financial Reporting Areas
- Increasing Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits: PCAOB Rules 3210 and 3211
In addition, the CAQ also has issued a companion alert, Select Considerations for the 2017 Audit Cycle for Brokers and Dealers, to provide auditing considerations that may be relevant for audit and attestation engagements for brokers and dealers registered with the US Securities and Exchange Commission.
Both alerts pose questions for auditors to consider while planning and performing their audits.