Audits

What will the new structure of the SASs look like after the clarity project is complete?

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All of the SASs are being rewritten. All those new/revised/updated/clarified/etc documents will go into effect on the same day.

Ouch.  For us change-phobic CPAs, there is a world of change on the horizon.

If you want a description of what the new SAS structure will look like, the AICPA has a video for explanation. …

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What will the new structure of the SASs look like after the clarity project is complete? Read More »

How to handle engagement quality control reviews in a small firm

Leave a Comment / Audits, Compilations & reviews /

SQCS 7 requires a policy for engagement quality control reviews in all CPA firms.  There is no size cutoff.  However the rules do anticipate great flexibility in establishing the criteria.

It is perfectly appropriate to fine tune the criteria so that a relatively small number of engagements would be selected.  How?

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How to handle engagement quality control reviews in a small firmRead More »

How to handle engagement quality control reviews in a small firm Read More »

Engagement quality control reviews are required for your quality control system under SQCS 7

Leave a Comment / Audits, Compilations & reviews, Peer Review /

Under the new rules for a quality control system, CPA firms who have accounting and auditing work (that means any compilations or reviews), must have a policy addressing engagement quality control reviews.

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Engagement quality control reviews are required for your quality control system under SQCS 7 Read More »

Quality control system documentation must be written

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One of the changes made by SQCS 7 is that the documentation of the quality control system must be in writing.

Previously the extensive documentation depended on the nature of the firm. In a smaller firm with relatively simple procedures it did not necessarily have to be in writing.  That has changed. You must have something written down.

How to proceed? Three ideas.

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Quality control system documentation must be written Read More »

One sentence explanation of the difference between audits and reviews

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(cross posted from www.ulvog.wordpress.com)

I have discussed the differences between audits, reviews, and compilations here and here. Even developed a visual illustration here.  Ask any CPA and you can get a long explanation of the distinctions.

For something shorter, consult this article by Angus Loten in the Wall Street Journal, which said:

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One sentence explanation of the difference between audits and reviews Read More »

Looking for a good explanation of Repo 105?

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What is Repo 105?  That is the accounting issue behind the lawsuit against Ernst & Young by the New York Attorney General over the Lehman collapse.  For a great explanation (with great illustrating spreadsheets), check out an article by Professor David Albrecht, Repo 105 Explained With Numbers and Detail.

Summary of his article …

Looking for a good explanation of Repo 105?Read More »

Looking for a good explanation of Repo 105? Read More »

Time to start paying attention to Ernst and the collapse of Lehman

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The New York AG has sued Ernst & Young over its role in the collapse of Lehman Brothers.  Probably a good time for those of us CPAs who are far removed from the Big 4 world to start paying attention.  The article in the Wall Street Journal here is a good place to start.  The articles I’ve read at the WSJ and elsewhere are starting to have those “where were the auditors” type of questions.  I know you don’t have enough things to do, but might be worth reading a few articles on point.

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A creative way to communicate fraud prevention to your clients

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As CPAs, we look for creative ways to persuade our clients to implement good internal controls.  I fear that our comments as CPAs usually fade along with all the other you-gotta’-do-this-now messages in our regulatory heavy culture.  Another approach is to explain the devastation that arises from fraud.  I have a new post at my other blog that takes this approach:  The tragedy of fraud.  …

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A creative way to communicate fraud prevention to your clients Read More »

Welcome to my new blog!

Leave a Comment / Accounting, Audits, Compilations & reviews /

Greetings, and welcome to my new blog.  I am still blogging at Nonprofit Update, found at www.ulvog.wordpress.com.  Why the new site?  I am talking to two very different audiences: the nonprofit community and CPAs working in the attestation area.  Thus, I will split my writing between two different blogs. 

Many of the previous posts of interest to CPAs have been brought into this blog.  Some of these posts are deleted from the other blog and some are left there.  In the future, posts related to the NPO world will be at www.ulvog.wordpress.com, comments specific to the CPA community will be here, and comments of interest to both will be cross-posted.

I hope this will be of help as you keep up to date with the torrent of changes in the attestation world.  Enjoy!

Welcome to my new blog! Read More »