Attestation Update – A&A for CPAs

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Archive for the ‘Audits’ Category

“New Requirement to Complete Your Firm’s Peer Review Information Annually” – PR Prompts, part 1

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In November 2019, the AICPA published the first of a new semi-annual newsletter, PR Prompts!, designed to help CPAs keep current on peer review news.

The AICPA gave me permission to reprint portions of the newsletter on my blog. My thanks to the AICPA for producing this information and for giving me reprint permission.

This is the first of six posts to help you stay up to date.

The following comment is quoted verbatim. For ease of reading it will not be set inside quotation marks:

 

New Requirement to Complete Your Firm’s Peer Review Information Annually

The AICPA Peer Review Program (Program) is committed to support and enhance audit quality of firms on an ongoing basis, not just during the formal process of peer review. As such, starting in mid-2020 the AICPA Peer Review Board (PRB) will require annual submission of peer review information from all firms enrolled in the Program.

The PRB expects that annual submission of peer review information will benefit firms in the following ways:

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Written by Jim Ulvog

December 9, 2019, 6:00 am at 6:00 am

Posted in Audits, Peer Review

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New SAS and SSAE modify definition of materiality

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The Auditing Standards Board has issued SAS 138 and SSAE 20 which change the definition of materiality. Under current audit standards, the materiality definition matches what is currently in use by IASB and IAASB. The revision will get the definition to match what is currently used by the American legal system, PCAOB, SEC, and FASB.

The new definition:

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Written by Jim Ulvog

December 5, 2019, 12:52 pm at 12:52 pm

Posted in Audits

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Status of the six felons in the leaked inspection lists fiasco

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Of the six players in the fiasco of KPMG getting leaked inspection lists from PCAOB, one is in prison, two have been sentenced and await their reporting date, while three are scheduled for sentencing.

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Written by Jim Ulvog

November 20, 2019, 7:24 am at 7:24 am

Posted in Audits

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Third sentencing: PCAOB staffer who leaked inspection lists to KPMG earns 9 months in prison.

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Jeffrey Wada, the former PCAOB staff person who leaked inspection lists to KPMG, was sentenced to nine months in jail plus three years supervised release.  He was convicted of wire fraud in March 2019.

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Written by Jim Ulvog

October 11, 2019, 16:01 pm at 4:01 pm

Posted in Audits

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Last person in KPMG inspection leak fiasco enters guilty plea

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The last person to face justice in KPMG’s fiasco of gaining illegal access to PCAOB inspection lists entered a guilty plea a few weeks before his scheduled trial.

David Britt entered a guilty plea on 10/3/19 to one count conspiracy to commit wire fraud. His trial would have otherwise started on 10/21/19.

Sentencing is scheduled for 5/8/20.

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Written by Jim Ulvog

October 4, 2019, 9:15 am at 9:15 am

Posted in Audits

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Average cost of health insurance plan. Reference point for your next analytical review of health insurance costs.

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Here are some tidbits for your next analytical review of health insurance costs during an audit or review.

From annual survey by Kaiser Family Foundation of employer provided health insurance:

  • $20,576 – average annual cost of family plan in 2019
  • $19,616 – average annual cost of family plan in 2018
  • 71% – average portion of costs paid by employer

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Written by Jim Ulvog

September 25, 2019, 10:50 am at 10:50 am

Second sentencing in KPMG fiasco of getting list of PCAOB inspection list.

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The most senior level former partner charged in the KPMG “steal the exam” fiasco was sentenced to one year and one day in prison for his role in the leak of PCAOB inspection targets. David Middendorf received a fraction of the 37-46 months requested by US Attorney office and 46-57 months recommended by the United States Probation Office.

Some articles to provide lots more info:

Wall Street Journal – Jean Eaglesham – 9-11-19 – Ex-KPMG Partner Sentenced to a Year and a Day in ‘Steal the Exam’ Scandal

Crain’s New York Business – Aaron Elstein – 9/11/19 – Former top KPMG partner gets a year and a day in prison – Article points out the sentence of a year plus one day means Mr. Middendorf is eligible for good behavior credit.

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Written by Jim Ulvog

September 12, 2019, 6:00 am at 6:00 am

Posted in Audits

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