Posts Tagged ‘review’
The 2017 audit season is about to begin. Planning is well underway for all those 12/31 clients.
To help you get ready, the annual updates to AICPA risk alerts are available. Consider:
- General Accounting and Auditing Developments – 2016/17 Audit Risk Alert
- Developments in Preparation, Compilation, and Review Engagements 2016/17
- Government Auditing Standards and Single Audit Developments – Audit Risk Alert (16/17 edition)
I read the risk alerts every year. They are great for reminding me of what I already knew and even better for pointing out what tidbits I had missed.
You might want to check them out in the lull before the rush of field work hits.
There are two new SSARS pronouncements. Most likely they will not be a big deal for most accountants, but if you work in the comp or review arena, you need to know they exist and you really ought to have a vague idea what is in them.
First, a tip on staying out of trouble on nonattest services…
11/1 – Journal of Accountancy – Nonattest services quiz – A great six question quiz on nonatttest services. Take the quiz to find out how well you are doing on independence and documentation requirements. By the way, if you miss some questions you probably taking out some really serious risk in your audit practice that you didn’t even know about.
This is a great opportunity to find out what you don’t know, which can hurt you.
9/23 – Journal of Accountancy – ARSC complete clarity project with issuance of SSARS No. 22 – Read the rest of this entry »
The following article provides a superb update on recent developments in the peer review program. The article is graciously provided by the California Society of CPAs and the information described here applies in all jurisdictions across the U.S.
Because the entire article is quoted verbatim without any additional comments from me, none of the article will be placed in quotation marks.
Originally published by CalCPA (www.calcpa.org) in the October issue of California CPA magazine.
Used with written permission of the California Society of CPAs.
Be Prepared – A Comprehensive Peer Review Update
By Linda McCrone
Peer review is a successful program that helps firms improve their quality control systems and elevate the quality of accounting and auditing engagements. The AICPA contributed the software program that tracks peer reviews and the staff that manages the program. AICPA member volunteers contribute their time to oversee the program, keep the peer review program forms current and make certain that the peer review standards remain relevant. But like any successful program, peer review must continue to evolve to keep up with events.
The new risk alerts for 15/16 are out from the AICPA. These will help you get ready for your year-end work starting in just a few weeks.
Charles Hall has written a book describing a new service called ‘preparation’ and the changes for compilations from SSARS 21.
If you perform a few compilation engagements a year and have not started paying attention to the complete rewrite of comp and review rules, this is the book for you. The transition date is financial statements for years ending after December 15, 2015. Essentially this applies to all your 12/31/15 comp and review work.
If you would like to compare the various definitions in play for materiality, then Emily Chasan has the article for you at the Wall Street Journal on 11/3: Definition of Materiality Depends Who You Ask.
The definition readers of this blog have incorporated deep into their brain is from FASB, as follows:
I’ve dropped the prices for the print copies of my books available at Amazon, Barnes & Noble, and iTunes store.
Here is what you can find on-line:
Tragedy of Fraud – Insider Trading Edition
Story of Scott London’s fall from regional audit partner at KPMG to prison inmate because of his insider trading.
- $6.99 in paperback, a $3 price cut
- $2.99 in Kindle e-book format, a $2 price cut
- Also available at iTunes and Barnes and Noble