CAQ Issues Audit Alerts on Risk Areas for 2017 Audit Cycle

The Center for Audit Quality (CAQ) has published two audit alerts for use by public company auditing firms in addressing potential risks during the upcoming 2017 audit cycle. These alerts are:

  • CAQ Alert #2017-04,Select Auditing Considerations for the 2017 Audit Cycle(Auditing Considerations); and
  • CAQ Alert #2017-05,Select Considerations for the 2017 Audit Cycle for Brokers and Dealers(Brokers and Dealers Considerations).

Both alerts pose questions for auditors to consider while planning and performing their audits.

Auditing Considerations identifies and discusses some of the more complex audit areas or those requiring more judgment for the upcoming audit cycle, including some of those identified by the Public Company Accounting Oversight Board (PCAOB) through its inspection process and published in the recent PCAOB Staff Inspection Brief.

This alert focuses on significant topics, including:

  • Auditor independence;
  • Multinational audits;
  • Transitioning to new accounting standards;
  • Audit areas potentially affected by economic factors;
  • Recurring audit deficiencies;
  • Financial reporting areas; and
  • Increasing transparency through disclosure of engagement partner and certain other participants in audits: PCAOB Rules 3210 and 3211.

Broker Dealers Considerations, the companion alert, provides auditing considerations that may be relevant for audit and attestation engagements for brokers and dealers registered with the SEC. As noted in its introduction, among other topics, it includes discussion of: risk of material misstatement due to fraud; revenue recognition; auditing information produced by a service organization; supplemental information; review engagements; and examination engagements.

Select Auditing Considerations for the 2017 Audit Cycle is available at:

http://thecaq.org/caq-alert-2017-04-select-auditing-considerations-2017-audit-cycle

Select Considerations for the 2017 Audit Cycle for Brokers and Dealers is available at:

http://thecaq.org/caq-alert-2017-05-select-auditing-considerations-2017-audit-cycle-brokers-and-dealers

The PCAOB Staff Inspection Brief is available at:

https://pcaobus.org/Inspections/Documents/inspection-brief-2017-3-issuer-scope.pdf

 

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