As the calendar turns to Fall, it is time to start planning year-end audit engagements again. While it may not have been a priority this year, it is also time to consider your upcoming peer review. Notably, the peer review process is changing. Therefore, planning for it now can help you avoid missteps during your review.
To help, we hosted a webcast featuring three industry thought leaders who discussed the changes, and how to avoid common issues. Additionally, they shared tools available today that can help overcome those hurdles. The industry thought leaders included:
- Deana Thorps, Manager of Audit Quality Initiatives at the AICPA
- Troy Coon, Partner at Watson Coon Ryan – and also a Peer Reviewer
- Patrick Tokarski, Senior Technology Product Manager at Wolters Kluwer
Why is Change Needed?
To continue, issues of non-conformity continue to arise in firms of all sizes, based on research conducted by the AICPA. In fact, that research indicates 60% of previously peer-reviewed engagements should have been deemed non-conforming. Consequently, the AICPA will hold Peer Reviewers more accountable moving forward. As a result, this will likely mean more findings than many firms are accustomed to.
Moreover, the AICPA also identified five focus areas which commonly contain deficiencies, including risk assessment, engagement acceptance, auditing revenue recognition, internal control, and SOC engagements. To be sure, how firms address these areas will be a point of emphasis in upcoming peer reviews. Particularly, it is critical to understand the impacts now so you can address them during your audit planning. That is why, during the session, our panelists included discussion on strategies and tools available to help your firm ensure compliance.
To add, the pace of technology change is also providing auditors with opportunities to ensure compliance – evidenced by constantly released new tools. For this reason, auditors have new opportunities to review their current technology, looking for ways to improve quality and efficiency. For the purpose of evaluation, be sure to consider:
- How does the tool help guide the auditor through the entire audit process?
- Does the tool enhance the auditor’s understanding of the client and, as a result, the risk assessment?
- Can the tool help expand the scope of testing beyond what has been done in the past?
Watch Now – Preparing for Peer Review
In conclusion, take advantage of this free session. Titled Preparing for Peer Review – how to avoid missteps, just click this link to watch the webinar recording.
P.S. You might also enjoy reading this associated blog – K·Coe Isom Uses Integrated Audit Approach for Better Peer Reviews and Higher-quality Audits