scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on International Standard on Auditing (ISA) 720 (Revised), The Auditor's Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor's Report Thereon

2013 ◽  
Vol 7 (2) ◽  
pp. C1-C6 ◽  
Author(s):  
Nancy Chun Feng ◽  
Mikhail Pevzner ◽  
Jesse Robertson ◽  
Massood Yahya-Zadeh
Keyword(s):  
Financial Statements ◽  
Data Availability ◽  
International Standard ◽  
Related Information ◽  
Auditing Standards ◽  
Other Information

SUMMARY On November 14, 2012, the International Auditing and Assurance Standards Board (IAASB) solicited public comments on its exposure draft of the document entitled International Standard on Auditing (ISA) 720 (Revised), The Auditor's Responsibilities Relating to Other Information in Documents Containing or Accompanying Audited Financial Statements and the Auditor's Report Thereon. The four-month comment period ended on March 14, 2013. This commentary summarizes the contributors' views on this exposure draft. Data Availability: The exposure draft and other related information are available at http://www.ifac.org/publications-resources/international-standard-auditing-isa-720-revised-auditor-s-responsibilities-re

scholarly journals Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on International Auditing and Assurance Standards Board Exposure Draft, Proposed International Standard on Auditing 220 (Revised): Quality Management for an Audit of Financial Statements

2019 ◽  
Vol 13 (2) ◽  
pp. C10-C19 ◽  
Author(s):  
Veena L. Brown ◽  
Sean Dennis ◽  
Denise Dickins ◽  
Julia L. Higgs ◽  
Tammie J. Schaefer
Keyword(s):  
Quality Management ◽  
Financial Statements ◽  
Data Availability ◽  
Firm Level ◽  
Audit Firm ◽  
International Standard ◽  
Policies And Procedures ◽  
Auditing Standards ◽  
Draft International Standard

SUMMARY In February 2019, the International Auditing and Assurance Standards Board (the Board or IAASB) issued a request for comment on its Exposure Draft, Proposed International Standard on Auditing 220 (Revised): Quality Management for an Audit of Financial Statements (ED-220). ED-220 explicitly requires the engagement partner to demonstrate sufficient and appropriate involvement in all phases of the audit, it describes certain activities that must be performed by the audit engagement partner, and it explicitly acknowledges the role of audit firm-level policies and procedures and the changing complexity of audit engagement teams. The comment period ended on July 1, 2019. This commentary summarizes the participating committee members' views on selected questions posed by the IAASB. Data Availability: ED-220, including questions for respondents, is available at: https://www.ifac.org/publications-resources/exposure-draft-international-standard-auditing-220-revised-quality-management.

scholarly journals Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on International Auditing and Assurance Standards Board Exposure Draft, Proposed International Standard on Auditing 315 (Revised): Identifying and Assessing the Risks of Material Misstatement and Proposed Consequential and Conforming Amendments to Other ISAs

2018 ◽  
Vol 13 (1) ◽  
pp. C1-C9 ◽  
Author(s):  
Veena Looknanan Brown ◽  
Paul J. Coram ◽  
Sean A. Dennis ◽  
Denise Dickins ◽  
Christine E. Earley ◽  
...  
Keyword(s):  
Information Technology ◽  
Financial Reporting ◽  
Data Availability ◽  
Professional Skepticism ◽  
International Standard ◽  
Auditing Standards ◽  
Explicit Recognition ◽  
Automated Tools ◽  
Tools And Techniques

SUMMARY On July 16, 2018, the International Auditing and Assurance Standards Board (the Board or IAASB) issued a request for comment on its Exposure Draft, Proposed International Standard on Auditing 315 (Revised): Identifying and Assessing the Risks of Material Misstatement and Proposed Consequential and Conforming Amendments to Other ISAs (ED-315). Major enhancements proposed include explicit recognition of the auditor's use of automated tools and techniques, requiring an understanding of an auditee's use of information technology relevant to financial reporting, acknowledging the influence of an entity's complexity on the audit plan, and increasing the emphasis on the need for professional skepticism. The comment period ended on November 2, 2018. This commentary summarizes the participating committee members' views on selected questions posed by the IAASB. Data Availability: ED-315, including questions for respondents, is available at: https://www.ifac.org/publications-resources/exposure-draft-isa-315-revised-identifying-and-assessing-risks-material.

scholarly journals Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on Proposed Statement on Standards for Attestation Engagements, Amendments to the Description of the Concept of Materiality

2019 ◽  
Vol 13 (2) ◽  
pp. C20-C22
Author(s):  
Sean Dennis ◽  
Denise Dickins ◽  
Christine E. Earley ◽  
Julia L. Higgs
Keyword(s):  
Financial Statements ◽  
Data Availability ◽  
Certified Public Accountants ◽  
American Institute ◽  
Economic Decisions ◽  
Auditing Standards ◽  
Public Accountants

SUMMARY In June 2019, the Auditing Standards Board (the Board) of the American Institute of Certified Public Accountants issued a request for comment on its Proposed Statement on Standards for Attestation Engagements, Amendments to the Description of the Concept of Materiality (the Proposal), which seeks to change the criteria for determining whether omissions or misstatements rise to the level of materially misstating financial statements from those that could reasonably be expected to influence economic decisions of a user, to those where there is a substantial likelihood that they would influence the judgment of a reasonable user. The comment period ends August 5, 2019. This commentary summarizes the participating committee members' views on feedback requested by the Board. Data Availability: The Proposal, including questions for respondents, is available at: https://www.aicpa.org/content/dam/aicpa/research/exposuredrafts/accountingandauditing/downloadabledocuments/20190605a/20190605a-ed-sas-ssae-materiality.pdf.

The Impact of Auditor Association on Client Multi-Venue Disclosure Transparency

2014 ◽  
Vol 8 (2) ◽  
pp. A1-A9
Author(s):  
Stephen W. Wheeler ◽  
Sandra J. Cereola ◽  
Timothy J. Louwers
Keyword(s):  
Financial Statements ◽  
Financial Statement ◽  
Auditing Standards ◽  
Other Information ◽  
Public Disclosures ◽  
Audit Reports ◽  
The Impact ◽  
Do So

SUMMARY: We investigate the issue of duplicate disclosures of a common accounting issue in audited financial statements and the unaudited Management Discussion and Analysis (MD&A) sections of annual 10-K filings. We do so to address whether the degree of auditor association with client public disclosures affects the transparency of these disclosures. Despite different, but similar, disclosure criteria for the two venues, we note significantly lower disclosure frequencies for presumed LIFO liquidations in the MD&A than in the financial statement footnotes. Furthermore, none of the audit reports for the companies examined contained explanatory language to indicate that auditors considered these disclosure-tendency differences to be material inconsistencies as defined in SAS Nos. 8 and 118. We discuss how the wording of the applicable auditing standards may cause the noted disclosure differences, indicating a need to clarify further auditors' responsibilities regarding other information in documents containing audited financial statements.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on PCAOB Release No. 2013-009, Proposed Rule on Improving the Transparency of Audit: Proposed Amendments to PCAOB Auditing Standards to Provide Disclosure in the Auditor's Report of Certain Participants in the Audit

2014 ◽  
Vol 8 (2) ◽  
pp. C1-C7 ◽  
Author(s):  
Urton L. Anderson ◽  
Lisa Milici Gaynor ◽  
Karl E. Hackenbrack ◽  
Ling Lei Lisic ◽  
Yi-Jing Wu
Keyword(s):  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
The Public ◽  
Related Information ◽  
Public Company ◽  
Public Accounting Firms ◽  
Auditing Standards

SUMMARY On December 4, 2013 the Public Company Accounting Oversight Board (PCAOB) solicited public comments on its reproposed amendments to its standards that would improve the transparency of public company audits. The amendments would require (1) disclosure in the auditor's report of the name of the engagement partner, and (2) disclosure in the auditor's report of the names, locations, and extent of participation of other independent public accounting firms that took part in the audit and the locations and extent of participation of other persons not employed by the auditor that took part in the audit. The comment period initially ended on February 3, 2014, but was subsequently extended to March 17, 2014. This commentary summarizes the contributors' views on these amendments. Data Availability: The exposure drafts of the proposed and reproposed rules and related information are available at: http://pcaobus.org/Rules/Rulemaking/Pages/Docket029.aspx

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on PCAOB Release No. 2015-004, Supplemental Request for Comment: Rules to Require Disclosure of Certain Audit Participants on a New PCAOB Form

2015 ◽  
Vol 10 (1) ◽  
pp. C1-C10 ◽  
Author(s):  
Marcus M. Doxey ◽  
Marshall A. Geiger ◽  
Karl E. Hackenbrack ◽  
Sarah E. Stein
Keyword(s):  
Data Availability ◽  
The Public ◽  
Related Information ◽  
Audit Firms ◽  
Public Company ◽  
Auditing Standards ◽  
New Form

SUMMARY On June 30, 2015 the Public Company Accounting Oversight Board (PCAOB) issued a supplemental request for comment on its 2013 reproposal to require auditors to disclose in the auditor's report the name of the engagement partner and information about certain other participants in the audit. The supplemental request solicited public comments on an alternative to disclosure of this information in the auditor's report, namely that audit firms report (1) the name of the engagement partner, and (2) the names, locations, and extent of participation of other audit participants in a new form (Form AP) to be filed with the PCAOB within 30 days of the date the auditor's report is first included in a document filed with the SEC. The comment period ended on August 31, 2015. This commentary summarizes the participating committee members' views on the alternatives presented in the supplemental request for comment. Data Availability: The exposure drafts of the proposed and reproposed rules, the supplemental request for comment, and related information are available at: http://pcaobus.org/Rules/Rulemaking/Pages/Docket029.aspx

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on the PCAOB Rulemaking Docket Matter No. 34: PCAOB Release No. 2011-003, Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements.

2011 ◽  
Vol 5 (2) ◽  
pp. C1-C14 ◽  
Author(s):  
Joseph F Brazel ◽  
Paul Caster ◽  
Shawn Davis ◽  
Steven M Glover ◽  
Diane J Janvrin ◽  
...  
Keyword(s):  
Audit Quality ◽  
Exposure Period ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Statement ◽  
The Public ◽  
Additional Information ◽  
Public Company ◽  
Auditing Standards ◽  
Auditor Reporting

SUMMARY Recently, the Public Company Accounting Oversight Board (PCAOB or Board) issued a concept release to solicit public comment on the potential direction of a proposed standard-setting project on the content and form of reports on audited financial statements. The objective of the concept release was to discuss several alternatives for changing the auditor's reporting model that could increase its transparency and relevance to financial statement users, while not compromising audit quality. To that end, the alternatives included (1) a supplement to the auditor's report, in which the auditor would be required to provide additional information about the audit and the company's financial statements (an “Auditor's Discussion and Analysis”), (2) required and expanded use of emphasis paragraphs in the auditor's report, (3) auditor reporting on information outside the financial statements, and (4) clarification of certain language in the auditor's report. The PCAOB provided for a 102-day exposure period (from June 21 to September 30, 2011) for interested parties to examine and provide comments on the conceptual approaches to rulemaking that might complement the application of Section 105(c)(6). The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below to the PCAOB on the PCAOB Release No. 2011-003, Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements. Data Availability: Information about and access to the release is available at: http://pcaobus.org/Rules/Rulemaking/Docket034/Concept_Release.pdf

scholarly journals Comments of the Standards Committee of the Auditing Section of the American Accounting Association on PCAOB Reproposed Auditing Standard on Related Parties

2013 ◽  
Vol 7 (2) ◽  
pp. C23-C29 ◽  
Author(s):  
Natalia Mintchik ◽  
Mikhail Pevzner ◽  
Gregory Sierra
Keyword(s):  
Data Availability ◽  
Public Companies ◽  
The Public ◽  
Related Information ◽  
Auditing Standards

SUMMARY On May 7, 2013, the Public Companies Accounting Oversight Board (PCAOB) solicited public comments on its reproposed exposure draft of the Auditing Standard on Related Parties (Docket 038: Proposed Auditing Standard on Related Parties and Related Amendments to PCAOB Auditing Standards). The two-month comment period ended on July 8, 2013. This commentary summarizes the contributors' views on this exposure draft. Data Availability: The exposure draft and other related information is available at: http://pcaobus.org/Rules/Rulemaking/Pages/Docket038.aspx

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on FASB Exposure Draft of Proposed Accounting Standard Update: Notes to Financial Statements (Topic 235): Assessing Whether Disclosures Are Material

2016 ◽  
Vol 10 (2) ◽  
pp. C1-C9
Author(s):  
Urton L. Anderson ◽  
Marcus M. Doxey ◽  
Marshall A. Geiger ◽  
Willie E. Gist ◽  
Diane J. Janvrin ◽  
...  
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
Data Availability ◽  
Financial Accounting ◽  
Financial Statement ◽  
Financial Accounting Standards Board ◽  
Accounting Standard ◽  
Stated Objective ◽  
Auditing Standards ◽  
The Way

SUMMARY On September 24, 2015 the Financial Accounting Standards Board (FASB) solicited public comments on a proposed Accounting Standards Update of the FASB Accounting Standards Codification. The stated objective is to improve the effectiveness of footnote disclosures to financial statement users. The focus of the Update is to clarify the way materiality should be considered when assessing requirements for providing information in the notes. The comment period ended on December 8, 2015. This commentary summarizes the contributors' views on these amendments. Data Availability: The exposure draft of Proposed Accounting Standard Update: Notes to Financial Statements (Topic 235): Assessing Whether Disclosures Are Material is available at: http://www.fasb.org/cs/ContentServer?c= Document_C&pagename=FASB%2FDocument_C%2FDocumentPage&cid=1176166402325

Enhancing the Auditor's Report: To What Extent is There Support for the IAASB's Proposed Changes?

2014 ◽  
Vol 28 (4) ◽  
pp. 719-747 ◽  
Author(s):  
Roger Simnett ◽  
Anna Huggins
Keyword(s):  
Communication Theory ◽  
Financial Statements ◽  
Data Availability ◽  
Additional Information ◽  
Stakeholder Groups ◽  
Stakeholder Support ◽  
Other Information ◽  
Information And Communication ◽  
Regulatory Bodies ◽  
Auditor Reporting

SYNOPSIS This article outlines proposed reforms to auditor reporting currently being considered by the International Auditing and Assurance Standards Board (IAASB), and other key national and transnational standard-setters and regulatory bodies. It adds to recent academic contributions on reforming the auditor's report by analyzing the 165 stakeholder responses to the IAASB's 2012 Invitation to Comment: Improving the Auditor's Report to determine levels of support for the IAASB's proposed reforms, and the differences, if any, between the views of various respondents based on stakeholder groups (e.g., audit and assurance firms, users, preparers, regulators, etc.) and regional classifications. Guided by insights from communication theory, our results show the levels of stakeholder support for the IAASB's proposed reforms addressing auditors' expectations, information, and communication gaps are mixed. The strongest overall support was for enhanced auditor reporting on other information attached to, or intended to be read with, the financial statements, and the least supported initiative was including additional information in the auditor's report about the auditor's judgments and processes. While overall there is generally consensus across both stakeholder groups and regions concerning the various questions investigated, we highlight where statistically significant differences between groups do exist. Notably, North American respondents were less likely to support a number of the IAASB's proposed reforms than their counterparts from other regions. Data Availability: The data used in this study are referred to on the IAASB's website.

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