Some auditors continue to struggle with appropriately selecting and testing journal entries in their audits of financial statements. Specifically, for audits of public companies, the Public Company Accounting Oversight Board (PCAOB) indicates that it continues to find many deficiencies pertaining to the examination of journal entries (or other adjustments) for possible fraudulent material misstatement.
It seems every time you open an accounting journal, there’s another round of Mergers and Acquisitions (M&A) announcements being featured. While growth through M&A has always been part of the accounting landscape, the influx of private equity over the past five years has accelerated M&A activity into a frenzied state. Although this drives a more …
When performing an audit, auditors are required to determine the client’s significant classes of transactions, account balances, and disclosures. Using the PPC approach, as outlined in our various audit guides, such as PPC’s Guide to Nonpublic Companies, we use the term significant audit area interchangeably with significant class of transactions, account balance, or disclosure. What Makes an Audit …
What Is a Significant Audit Area and Why Is It Important? Read More »
The Public Company Accounting Oversight Board (PCAOB) and the UK’s Financial Reporting Council (FRC) have recently announced their areas of focus for upcoming inspections and supervisory reviews of audit engagements. The PCAOB regulates audits of public companies and SEC-registered brokers and dealers. The FRC regulates auditors, accountants, and actuaries and sets the UK’s Corporate Governance …
Regulators Indicate Areas of Inspection Focus to Ensure Quality in Audits Read More »
You might recall that the AICPA issued clarified peer review standards in February 2022. These standards, Standards for Performing and Reporting on Peer Reviews, were effective for peer reviews commencing on or after May 1, 2022. This newly clarified guidance replaced and restructured all previously existing peer review guidance. The standards were developed to make peer …
How the Newly Clarified Peer Review Standards Impact Firms Read More »
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