Audit & assurance news and resources -- Journal of Accountancy

Breaking News

A Better Way to Gauge Profitability

EXECUTIVE SUMMARY Return-on-equity (ROE) is the correct profit metric to evaluate the performance of a business. However, the primary emphasis on financial ratio analysis must be on operating performance. The “advanced” version of the DuPont model remedies the original model’s failure to cleanly separate the effects of operating and financing...

TOPICS

June 4, 2025

Auditing Standards Board releases consultation paper on its forward strategy

The ASB seeks input on the draft of its 2026–2030 strategic plan. The comment deadline is June 13.

March 14, 2025

PCAOB offers reporting guidance on a number of fronts

The board offers advice to public company auditors about Form AP, upcoming standards on quality control and confirmation, and in the form of free PCAOB-led forums.

March 1, 2025

Lessons learned from the first year of SAS 145

Implementing SAS 145, the new audit standard, has changed one firm’s documentation and brought about efficiencies.

February 14, 2025

A&A Focus recap: FASB and ASB chair recap and preview activities

The February webcast included one-on-one discussions with the chairs of the accounting and auditing standard setters.

February 14, 2025

AICPA auditing board approves two exposure drafts for public comment

The AICPA Auditing Standards Board voted Thursday to separately expose for public comment proposed changes related to attestation review engagements and external confirmations in the AICPA Professional Standards.

February 12, 2025

PCAOB withdraws proposed rules requiring extensive firm and engagement metrics

The AICPA had urged the SEC to refrain from approving the rules, warning they would “pose significant challenges” to small and midsize firms. An AICPA statement said that the “PCAOB’s decision not to move forward with the rules is the right one.”

January 17, 2025

A&A Focus recap: Quality Management FAQs and a 2024 ASU rundown

The January webcast also included a deep dive into step 3 of the five-step revenue recognition process outlined in FASB ASC 606.

January 15, 2025

Prop. regs. address expanded annual compensation deduction limitation

The regulations provide guidance on determining who is one of the “five highest compensated employees” under Sec. 162(m)(3)(C).

January 14, 2025

Update: Digital assets practice aid addresses new FASB standards

The AICPA resource features new guidance and terminology for financial statement preparers and auditors.

December 23, 2024

A&A Focus recap: Updates on CECL and artificial intelligence

The December webcast also included updates on the AICPA Accounting Standards Review Committee’s preparation standards exposure draft and on recent FASB news.

December 20, 2024

AICPA asks SEC to reject PCAOB rules that pose ‘significant challenges’

A comment letter sent Thursday urges the SEC, which oversees the PCAOB, to “refrain from approving” final rules issued last month that call for certain PCAOB-registered public accounting firms to report on a list of firm and engagement metrics.

December 11, 2024

PCAOB shares inspection priorities for 2025

The board, facing an uncertain future following the presidential election, plans to prioritize inspections in the financial, real estate, and information technology sectors in 2025.

December 10, 2024

How the new QM standards may affect peer review

Follow these tips to ensure a smooth peer review process once the new standards take effect.

December 9, 2024

Engagement quality reviews: What auditors should know

Firms with A&A practices should be aware that the new quality management standards include changes to engagement quality reviews.

December 3, 2024

A&A Focus recap: Improving the peer review experience

Also, an internal controls expert joined for a discussion on COSO and its relationship to SAS 145, and a current Auditing Standards Board member addressed questions the AICPA has been receiving on the QM implementation process.

November 22, 2024

PCAOB will require firms to share a new set of metrics

The board approves eight firm and engagement metrics for disclosure and adds to the disclosures it requires during annual reporting and special reporting periods. It also approves its 2025 budget and puts any action related to NOCLAR on hold until 2025.

November 15, 2024

PCAOB amendment addresses registration of inactive firms

The adopted rule empowers the PCAOB to withdraw the registration of firms that don’t file annual reports and don’t pay annual dues for two consecutive years.

November 5, 2024

AICPA board approves update to peer review standards

The AICPA Peer Review Board approved changes that align with new quality management standards for firms’ accounting and auditing practices.

November 1, 2024

Resources to implement the QM standard

The AICPA offers a practice aid and checklist to help firms implement the new quality management standard by the 2025 deadline.

November 1, 2024

The data-driven audit: Technology and the future of auditing

Cathy Rowe, Senior Vice President and Segment Leader, U.S. Professional Market, Wolters Kluwer Tax & Accounting North America, discusses how data-driven insights combined with analysis and guidance can make audits more thorough and help firms make better decisions.