scholarly journals Comments of the Auditing Standards Committee of the Auditing Section of the American Accounting Association on Proposed Statement on Auditing Standards (SAS), Audit Evidence

2019 ◽  
Vol 14 (1) ◽  
pp. C1-C9
Author(s):  
Veena Looknanan Brown ◽  
Denise Dickins ◽  
Dana R. Hermanson ◽  
Julia L. Higgs ◽  
J. Gregory Jenkins ◽  
...  
Keyword(s):  
Data Analytics ◽  
Information Sources ◽  
Data Availability ◽  
External Information ◽  
Certified Public Accountants ◽  
American Institute ◽  
Professional Skepticism ◽  
Audit Data ◽  
Audit Evidence ◽  
Auditing Standards

SUMMARY On June 20, 2019, the American Institute of Certified Public Accountants Auditing Standards Board (the Board or ASB) issued a request for comment on its Exposure Draft, Proposed Statement on Auditing Standards, Audit Evidence. Enhancements in the proposed SAS include the use of emerging technologies by both preparers and auditors, audit data analytics, the application of professional skepticism, and the expanding use of external information sources as audit evidence. The comment period ended on September 18, 2019. This commentary summarizes the participating committee members' views on selected questions posed by the ASB. Questions not addressed by the committee are listed at the end of this manuscript. Data Availability: Proposed Statement on Auditing Standards (SAS), Audit Evidence, including questions for respondents, is available at: https://www.aicpa.org/content/dam/aicpa/research/exposuredrafts/accountingandauditing/downloadabledocuments/20190620a/20190620a-ed-sas-audit-evidence.pdf

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.

Audit Practices of PricewaterhouseCoopers

2000 ◽  
Vol 19 (2) ◽  
pp. 176-182 ◽  
Author(s):  
Barry N. Winograd ◽  
James S. Gerson ◽  
Barbara L. Berlin
Keyword(s):  
The United States ◽  
International Federation ◽  
International Standards ◽  
Certified Public Accountants ◽  
American Institute ◽  
Distinctive Features ◽  
International Firms ◽  
New Development ◽  
Auditing Standards ◽  
Audit Approach

This paper discusses the development of the PricewaterhouseCoopers Audit Approach (PwCAA), identifies distinctive features of this approach, and provides information on new development areas. The discussion will provide a summary of each of these items and will focus on the distinctive features of the PwCAA. The article will not cover elements that appear to be consistent with other firm methodologies. Significant consistencies exist since all of the major international firms essentially operate under generally accepted auditing standards, i.e., the International Standards on Auditing (ISA) as established by the International Federation of Accountants. In the United States, they also comply with generally accepted auditing standards (GAAS) as established by the American Institute of Certified Public Accountants (AICPA).

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.

An Exploratory Study into the Use of Audit Data Analytics on Audit Engagements

2020 ◽  
Vol 34 (4) ◽  
pp. 75-103 ◽  
Author(s):  
Aasmund Eilifsen ◽  
Finn Kinserdal ◽  
William F. Messier ◽  
Thomas E. McKee
Keyword(s):  
Institutional Theory ◽  
Professional Practice ◽  
Exploratory Study ◽  
Data Analytics ◽  
Data Availability ◽  
Public Accounting ◽  
Accounting Firms ◽  
It Systems ◽  
Audit Data ◽  
Public Accounting Firms

SYNOPSIS This study explores the use of audit data analytics (ADA) in current audit practice. First, we interviewed the heads of professional practice of five international public accounting firms in Norway. We find that they differ in strategies on how to implement ADA and the heads report significant uncertainty about the supervisory inspection authorities' response to the use of ADA. Second, we administered a questionnaire to 216 engagement partners and managers about their perceptions of ADA and their actual ADA use on 109 audit engagements. Overall, the attitudes toward ADA usefulness are positive. Analysis of the audit engagements suggests use of ADA is relatively limited and use of more “advanced” ADA is rare. More ADA are used for clients with integrated ERP/IT systems and for newly tendered audit engagements. We also provide details of ADA use on each phase of the audit. We discuss our findings from an institutional theory perspective. Data Availability: The data used in this study are confidential by agreement with the participants.

scholarly journals Comments by the Auditing Standards Committee of the Auditing Section of the American Accounting Association on PCAOB Rulemaking Docket Matter No. 37: PCAOB Release No. 2011-006, Concept Release on Auditor Independence and Audit Firm Rotation

2012 ◽  
Vol 6 (1) ◽  
pp. C15-C27 ◽  
Author(s):  
Keith L. Jones ◽  
Jagadison K. Aier ◽  
Duane M. Brandon ◽  
Tina D. Carpenter ◽  
Lisa M. Gaynor ◽  
...  
Keyword(s):  
Exposure Period ◽  
Auditor Independence ◽  
Data Availability ◽  
Professional Skepticism ◽  
Audit Firm ◽  
The Public ◽  
Public Comment ◽  
Public Company ◽  
Auditing Standards ◽  
Mandatory Audit Firm Rotation

SUMMARY In August 2011, 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 means to enhance auditor independence, objectivity, and professional skepticism. The Concept Release sought comments on and explores in detail the possibility of mandatory audit firm rotation. The PCAOB provided for a 121-day exposure period (from August 16 to December 14, 2011) for interested parties to examine and provide comments on the concept release. The Auditing Standards Committee of the Auditing Section of the American Accounting Association provided the comments in the letter below (dated December 13, 2011) to the PCAOB on PCAOB Rulemaking Docket Matter No. 37: PCAOB Release No. 2011-006, Concept Release on Auditor Independence and Audit Firm Rotation. Data Availability: Information about and access to the release are available at: http://pcaobus.org/Rules/Rulemaking/Docket037/Release_2011-006.pdf

Shareholder Wealth Effects of Audit Data Analytics Announcements

2020 ◽  
Vol 34 (4) ◽  
pp. 125-142
Author(s):  
Joung W. Kim ◽  
Jee-Hae Lim ◽  
Kyunghee Yoon
Keyword(s):  
Stock Market ◽  
Abnormal Return ◽  
Data Analytics ◽  
Shareholder Wealth ◽  
Data Availability ◽  
Wealth Effects ◽  
The Public ◽  
Audit Data ◽  
Benefits And Costs

SYNOPSIS This study examines stock market data to assess shareholders' responses to 210 audit data analytics (ADA) announcements from the years 2006 to 2018. Because the benefits and costs of ADA are typically intangible, hidden, and long-term oriented, no studies have empirically validated ADA's associated risks and returns. We analyze the abnormal return of each announcing firm's stock within a two-day period around the date when the firm made an announcement, capturing potential improvements in shareholder value. We find that shareholders are favorable about the prospective returns of client firms who adopt less sophisticated ADA and selective ADA, as those firms can easily coordinate and manage ADA implementation. Our findings may help researchers and practitioners understand complex ADA adoption and related issues, while also helping firms maximize the market impact of their ADA adoption strategies. Data Availability: Data are available from the public sources cited in the text.

scholarly journals The Auditing Standards Committee of the Auditing Section of the American Accounting Association's Response to the International Auditing and Assurance Standard's Board's Invitation to Comment: Enhancing Audit Quality in the Public Interest

2016 ◽  
Vol 11 (1) ◽  
pp. C1-C25 ◽  
Author(s):  
Christine E. Earley ◽  
Karen L. Hooks ◽  
Jenifer R. Joe ◽  
Paul W. Polinski ◽  
Zabihollah Rezaee ◽  
...  
Keyword(s):  
Quality Control ◽  
Public Interest ◽  
Audit Quality ◽  
Standard Setting ◽  
Data Availability ◽  
Professional Skepticism ◽  
The Public ◽  
Auditing Standards

SUMMARY: On December 17, 2015, the International Auditing and Assurance Standards Board (IAASB) issued an Invitation to Comment entitled Enhancing Audit Quality in the Public Interest: A Focus on Professional Skepticism, Quality Control and Group Audits (hereafter, the ITC). The ITC highlights the IAASB's discussions regarding the three separate, but related, topics: professional skepticism, quality control, and group audits, in order to solicit feedback on these topics from various stakeholders. The ITC also discusses potential standard-setting activities the IAASB could participate in to enhance audit quality. The comment period ended on May 16, 2016. This commentary summarizes the contributors' views on selected questions posed in the ITC. Data Availability: The invitation to comment (as of May 23, 2016) is available at: https://www.ifac.org/system/files/publications/files/IAASB-Invitation-to-Comment-Enhancing-Audit-Quality.pdf

ALVIN R. JENNINGS: MANAGING PARTNER, POLICY-MAKER, AND INSTITUTE PRESIDENT

2015 ◽  
Vol 42 (1) ◽  
pp. 85-104 ◽  
Author(s):  
Martin E. Persson ◽  
Vaughan S. Radcliffe ◽  
Mitchell Stein
Keyword(s):  
Policy Maker ◽  
Certified Public Accountants ◽  
American Institute ◽  
Academic Field ◽  
Accounting Research ◽  
Public Accountants

Alvin R. Jennings (1905–1990) was a rare breed of an accountant. He was trained as a practitioner and rose to become a managing partner at Lybrand, Ross Bros. & Montgomery, but he kept a constant watch on the academic field of accounting research. Jennings served on the influential American Institute of Accountants' Committee on Auditing Procedure (1946–49) and later as the president of the American Institute of Certified Public Accountants (1957–58). This paper explores these activities and Jennings' contribution to the professional, academic, and institution discourse of the accounting discipline.

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