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

November 1, 2024

Scaling SAS 145 for less-complex entities

Recognize opportunities to customize audit procedures at less-complex entities while meeting the requirements of the standard.

October 31, 2024

How auditors can demystify transformative technology

One tip from Institute of Internal Auditors CEO Anthony Pugliese on harnessing the power of emerging technology: You don’t have to know everything to start working with it.

October 17, 2024

Public sector talent shortage: Unique challenges require unique solutions

Serious concerns facing accounting in the government space can be solved only by a multistakeholder commitment to improved conditions, an AICPA/NASACT report finds.

October 14, 2024

A&A Focus recap: Private Company Council update

Also covered: COSO and its relationship to SAS 145, and ASB member addresses questions related to QM implementation.

October 9, 2024

AI promises more efficiency but won’t replace auditors

The 2024 BDO Audit Innovation Survey found that 54% of leaders expect their audit firm to use artificial intelligence and other advanced technologies to enhance the audit experience, but the human element is irreplaceable.

October 1, 2024

PCAOB inspectors offer advice in areas of risk

Public company audits can benefit from expert input, particularly in the rapidly changing world of cryptoassets. Also, the SEC, FASB, and FASAB issued regulatory updates.

September 17, 2024

A&A Focus recap: Leveraging control testing in an audit

Also, an update from the Auditing Standards Board chair, principal vs. agent analysis when recognizing revenue, and the new required income tax disclosures under FASB Accounting Standards Update No. 2023-09.

September 10, 2024

SEC approves PCAOB system of quality control

QC 1000 establishes a risk-based system that aligns with AICPA quality management standards, both of which take effect in late 2025.

August 16, 2024

A&A Focus recap: A deep dive into SAS 145

The August webcast also covered peer review updates, more on using technology in audits, and the AICPA Financial Reporting Framework for Small- and Medium-Sized Entities.

August 1, 2024

6 ways to improve the peer review experience

A survey of seasoned peer reviewers identifies ways reviewers and the firms being reviewed can change for the better.

July 29, 2024

Broker-dealer audit deficiencies on the rise, PCAOB finds

The board’s annual report identifies deficiencies in 70% of audit engagement reviews, offers advice aimed at reducing the number.

July 22, 2024

A&A Focus recap: The ethics of using AI in an audit

The July installment of the monthly newscast series also featured a look at the recently released ACFE Report to the Nations, and the first in a series of conversations about revenue recognition and digital assets.

July 17, 2024

Warning for EBP audit firms: Service agreements can create headaches

A letter from the Employee Benefit Plan Audit Quality Center addresses nondisclosure agreements and recommends actions that auditors can take to avoid running afoul of legal, regulatory, or professional standards.

July 3, 2024

Financial restatements drop, a good sign for reporting quality

The number of financial restatements filed with the SEC dropped by more than 50% from 2013 to 2022, according to a Center for Audit Quality study.

July 1, 2024

Audit smarter by reassessing audit risk

The AICPA Center for Plain English Accounting has developed steps to reimagine risk assessment in a more focused and efficient way.

June 26, 2024

A&A Focus recap: Top A&A and employee benefit plan issues

The June installment of the monthly newscast series reviews the top issues raised at two of the AICPA’s premier conferences, looks at software being used by auditors, and includes an update from the AICPA’s chief auditor.

June 18, 2024

TQA addresses related-party disclosure requirements

The AICPA issued a new Technical Question and Answer to provide nonauthoritative guidance regarding the audit implications of a new related-party disclosure requirement for institutions that participate in the financial assistance programs of the Higher Education Act.

June 13, 2024

PCAOB tightens liability standard

The board took three actions to update auditing standards and procedures, including the adoption of a change to an almost 20-year-old rule that tightens the standard of liability to “negligent” from “reckless” for an associated person who contributes to a firm’s violations.

June 13, 2024

Quality management: Details of a standard-setting journey

The chair of the AICPA Auditing Standards Board joins the JofA podcast to provide updates on quality management standards and explain why Dec. 15, 2025, is an important date. Listen to the episode or read the Q&A.

June 6, 2024

AICPA updates practice aid for digital assets

The practice aid for accounting for and auditing of digital assets has new guidance on auditing the valuation of digital assets along with auditing procedures regarding their existence, rights, and obligations.