The AICPA has issued a proposed Statement on Auditing Standards entitled: UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT AND ASSESSING THE RISKS OF MATERIAL MISSTATEMENT The challenge for the reader is that the standard is 207 pages long and it amends 7 other standards. The goal of the standard is admirable. The AICPA is trying to […]
State Agencies Obstruct Audits
The New York State Comptroller is complaining about State agencies obstructing audits. In his 2015–2016 Annual Report on Audits of State Agencies and Public Authorities. The Comptroller complains, “For the reporting year 2015-16, four agencies significantly delayed, obstructed, or otherwise impaired the scope of six audits…” For example, the Comptroller said: “ESD [Empire State Development […]
Professional Skepticism Still Lacking in Audits
The International Forum of Independent Audit Regulators (IFIAR) was established in September 2006 by independent audit regulators from 17 countries, including the Public Company Accounting Oversight Board (PCAOB) from the United States. IFIAR has issued its third survey of regulatory inspection findings of significant audit firms in their jurisdictions. The initial survey, released in June […]
PCAOB Sanctions Five Auditors for Independence and Other Violations
Recently, the Public Company Accounting Oversight Board, that oversees the audits of public companies, sanctioned five auditors for: Violating auditor independence requirements. Providing bookkeeping and auditing services to the same client. Allowing an unqualified person to oversee quality control requirements at a CPA firm. Failing to properly audit – among other things, the auditor failed […]
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