The PCAOB has released Audit Standard No. 16 - Communications with Audit Committees. This new standard is designed to establishe requirements that enhance the relevance, timeliness, and quality of the communications between the auditor and the audit committee. This new standard supersedes Interim Standards AU sec. 380 (Communication with Audit Committees) and AU sec. 310 (Appointment of the Independent Auditor), the transitional amendments to AU sec. 380, and related amendments to PCAOB standards.
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Tags: Internal Controls, PCAOB News & Information, audit, audit committee, PCAOB
We wanted to pose a question to our readers - aside from the perceived investor value added by selecting a Big 4 audit firm (PwC, KPMG, E&Y, or Deloitte), what other value does selecting these large audit firms add over a smaller firm?
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Tags: Internal Controls, Sarbanes-Oxley Articles & Information, PCAOB News & Information, audit, audit costs
Google SAS 104-115 and you will find mostly articles by us (Vibato) discussing the need for auditors to pay special attention to internal controls as part of their audit. Why? Because the AICPA & the PCAOB dictates standards that the auditors must adhere to in order to perform their audits. Parts of these requirements include reviewing your internal controls and this applies to ANY COMPANY THAT IS AUDITED – public, private, non-profit; it doesn’t matter. If you are audited, your auditors must look at your internal controls as part of your audit. If you do not have any documented internal controls then be prepared for a higher audit bill because your auditors will have to go looking for internal controls at your company on your dime year-over-year. Moreover, due to independence issues, they are not allowed to share their work with you to use going forward so they will do this work each year and all you will see for it is a higher bill. Period.
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Tags: PCAOB News & Information, financial risk, Accounting Tip of the Day, 404, audit, AICPA, Controls Testing, 10k, Internal Control Education
A recently published survey suggests that many CFOs are unhappy with their Big 4 audit firms but that there's not much the CFOs are doing about it. Read about the survey here.
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Tags: audit
NASDAQ recently filed a request with the SEC to change the regulations for listing on a major stock exchange for reverse-mergers - citing concerns over fraud, stock manipulation, and the quality of audits.
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Tags: Internal Controls, audit, fraud
