Posts Tagged ‘PCAOB’
Why Internal Auditors Are Annoyed
Today I want to circle back to that proposal from the Public Company Accounting Oversight Board about third-party confirmations in financial audits, a seemingly reasonable idea that in practice has alienated legions of internal auditors. We should take a few minutes to understand why that is. For those who missed our first post on this…
Read MoreConfirmations Contretemps in Audit World!
The internal auditing world is in an uproar this week over a proposed new auditing standard from the Public Company Accounting Oversight Board — one that throws some notable shade at the internal audit profession, and prompted the Institute of Internal Auditors to declare that it is “deeply concerned” about the idea. The proposed standard…
Read MoreEx-KPMG Boss Fined on Insider Tip Scandal
The Public Company Accounting Oversight Board has fined the former vice-chair of KPMG’s audit practice $100,000 for his role in a scandal where KPMG offered jobs to PCAOB employees in exchange for confidential information about upcoming inspections of KPMG audits. You might remember the story from several years ago. The feds indicted three KPMG partners…
Read MoreNew PCAOB Members Announced
Rejoice, audit and financial reporting professionals! We have a new slate of PCAOB board members, with a decided tilt toward experience in securities regulation — and perhaps even a bit light on representation from the audit industry. SEC chairman Gary Gensler announced the appointments Monday afternoon. By law, the SEC has authority to appoint board…
Read MorePCAOB Alert on Audits, External Data
The PCAOB published fresh guidance last week about how auditors should handle evidence supplied by others to help the auditor assess financial statements, important performance or valuation metrics, and, well, all the other stuff that can go into an audit report these days. The guidance is formally titled “Evaluating Relevance and Reliability of Audit Evidence…
Read MoreAnother KPMG Cheating Scandal!
A bit of embarrassing news for KPMG from Down Under: the PCAOB has fined the firm’s Australia affiliate $450,000 for a cheating scandal among more than 1,100 employees there, two years after regulators sanctioned KPMG’s U.S. offices for essentially the same offense. From at least 2016 until early 2020, according to the PCAOB’s settlement order,…
Read MoreThe PCAOB House-Cleaning and You
I’m all for a thorough spring cleaning, but this is next-level: the Securities and Exchange Commission fired the head of the Public Company Accounting Oversight Board on Friday, and told the remaining three board members that they’ll be gone too as soon as the SEC finds suitable replacements. SEC commissioner Gary Gensler announced the news…
Read MorePCAOB Stands Pat on Data Analytics
The PCAOB released an update Thursday on its thinking about how to use data analytics and related technologies in financial audits, and it seems that the regulator will maintain for now its belief that no new auditing standards to address technology are necessary. For several years now, the PCAOB has run a small task force…
Read MorePCAOB Previews Inspection Focus
The PCAOB plans to shake up how it will inspect audit firms this year, with a specific focus on how the pandemic has challenged financial reporting and audit risks and a promise to “reduce the predictability” of this year’s inspections. The agency published a staff alert on Tuesday outlining its priorities for 2021 inspections, so…
Read MorePCAOB Report on Pandemic Auditing
The PCAOB just published a mid-pandemic progress report on how audit firms are handling their work during coronavirus. Compliance and audit executives may want to give it a read for hints about how auditors are trying to inspect your internal controls and which risks are high priority. The report, Staff Observations and Reminders During the…
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