Risk alerts for imminent Audit cycle issued by CAQ
Two member alerts were published by the Center for Audit Quality in order to quickly help the public audit firms and also to tackle possible risks proactively. ‘Selecting Auditing Considerations for the 2016 Audit Cycle’ is the first alert focusing on some of the complex or judgmental audit areas for the impeding audit cycle including the ones identified by the Public Company Accounting Oversight Board through its process of inspection and that which has been published recently in the Inspection Briefs of the PCAOB Staff. The following is what is covered by the alert:
* Transparency improvements through the Disclosure of Partner Engagement and other participants as well
* Inappropriate alteration of documentation
* Communicating effectively with Audit Committees
* Assessment and response to the risks of material misstatement
* Internal control of financial reporting
* Identification of segments and disclosures
* Going concern
* 2016 Audit cycle additional considerations
Select Auditing Considerations for the 2016 Audit Cycle for Brokers ad Dealers’ is the second alert concentrates on the 2016 audit cycle considerations that would be pertinent for confirmation and audit engagements of dealers and brokers registered with the U.S. Securities and Exchange Commission. This alert entails areas which have recently captured the attention of the inspection process of PCAOB.
The auditing profession of the public company and the CAQ are intensely committed to constantly improve the quality of audit in a bid to better serve capital markets and investors. Cindy Fornelli, the CAQ executive director stated. Even as regulatory and risk priorities evolve, CAQ will go on issuing alerts and disseminating the current resources for the advantage of the members and other people.
Member alerts are not supposed to be relied on as an all- inclusive or definitive and should be read in combination with applicable standards, rules and guidance in totality.