Audit & assurance news and resources -- Journal of Accountancy

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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...

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September 1, 2023

AICPA seeks comments on proposed changes to QM standards

The exposure draft of the Statement on Standards for Attestation Engagements aims to align quality management standards with standards for audits, reviews, and compilations.

September 1, 2023

How 3 firms tackle the audit talent crunch

Nontraditional career paths, international expansions, and automation are among the approaches three firms are using successfully.

August 31, 2023

An updated practice aid and how it can assist in audits of digital assets

Updates to a digital assets practice aid provide valuable information for accounting for and auditing of digital assets. A CPA explains more in this podcast episode with transcript.

August 31, 2023

Quality management standards: How to perform a root cause analysis

An expert discusses the requirements to perform a root cause analysis as part of monitoring and remediation.

August 1, 2023

How authentication issues can affect financial data and financial statement audits

Organizations must look beyond traditional controls to safeguard data.

August 1, 2023

Peer review findings in audits of not-for-profits: What auditors need to know

Experts suggest ways to prevent common problems such as inadequate planning and risk assessment and insufficient documentation.

July 27, 2023

AICPA debuts new practice aid for tech-enabled auditing

The AICPA Auditing Standards Board’s Technology Working Group has developed a new practice aid that will emphasize how technology should be seen as a key enabler, elevating audit effectiveness and efficiency for the future. It uses risk assessment procedures under SAS No. 145 as the example.

July 25, 2023

PCAOB report: Audit deficiencies rise again in 2022

The number of audits found to have deficiencies during PCAOB inspections showed another year-over-year increase in 2022, according to a board staff report released Tuesday.

July 18, 2023

Quality management standards: How to identify risks and design responses

An expert suggests ways to get started implementing the new and very different risk-based standards.

June 23, 2023

PCAOB details priorities for audit inspections

The PCAOB has released expanded details regarding its list of priorities for 2023 audit inspections, most notably risk of fraud, risk assessment and internal controls, and auditing and accounting risks.

June 6, 2023

PCAOB amends auditor requirements for reporting noncompliance

The PCAOB issued an amendment designed to “strengthen auditor vigilance against fraud and other forms of noncompliance,” according to a news release.

May 24, 2023

Public companies reining in costs, according to audit partners

A lower percentage of companies are seeking new employees and increasing the benefits for their current workers, according to a survey of audit partners.

May 17, 2023

Why private companies need a plan for ESG reporting, assurance

Even if regulations don’t legally apply to private companies, they often apply from a practical standpoint. A new resource offers guidance on the importance of assuring sustainability data for public and private companies alike.

May 16, 2023

PCAOB prioritizes two standard-setting projects

The board plans to take action in the next 12 months related to firm and engagement performance metrics and substantive analytical procedures.

May 4, 2023

PCAOB enhances transparency of inspection reports

The PCAOB has enhanced its inspection reports with a new section on auditor independence and other improvements that are designed to “increase transparency by making publicly available more information that is relevant, reliable, and useful for investors and other stakeholders.”

April 20, 2023