Attestation Update – A&A for CPAs

Technical stuff for CPAs providing attestation services

Posts Tagged ‘audit

“Auditor Reporting” – PR Prompts!, part 5

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A complete overhaul of the auditor’s report for audits of 12/31/20 financial statements is going to be a very big deal. Please tune in to the new standards!

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.

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

I have looked at this page on the AICPA website. It is quite helpful. If you provide audits to your clients, it would be worth your time to find, browse, and bookmark this page.

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

 

Auditor Reporting

The form and content of the auditor’s reports will change substantively which will be effective for audits of financial statements for periods ending on or after December 15, 2020. Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, was issued in May 2019. SAS No. 134 includes a new AU-C section 701, Communicating Key Audit Matters in the Independent Auditor’s Report, and replaces the following AU-C sections in AICPA Professional Standards:

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Written by Jim Ulvog

January 13, 2020, 6:00 am at 6:00 am

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

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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

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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

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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

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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

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More details on first sentencing in KPMG/PCAOB fiasco as second sentencing is expected today.

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The second sentencing in the fiasco of leaking PCAOB’s inspection list to KPMG is set for 10:30 today, 9/11/19.

Background on Mr. Middendorf sentencing

David Middendorf will face federal judge J. Paul Oetken to learn how long he will be in federal housing. Judge Oetken is handling all of the trials in this case.

On 7/26/19 Mr. Middendorf submitted his arguments on sentencing (docket #379). If you have lots of time on your hand, you can also read the 25 attachments.

The US Attorney filing had this comment (#394), which I’ll quote:

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Written by Jim Ulvog

September 11, 2019, 7:32 am at 7:32 am

Posted in Audits

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