CAQ Snapshot: April 2020
Thursday, April 30, 2020
A New Auditor Resource for COVID-19
Auditors are navigating a dynamic financial reporting environment defined by mounting challenges for public companies, changing regulations, and a virtual auditing environment. To help auditors maintain audit quality through these challenges, the CAQ is helping the profession by conveying insights in webinars, engaging with the media, and sharing helpful resources on social media.
Expanding our support for the profession, the CAQ has now launched a new COVID-19 resource platform—a one-stop shop of resources from audit firms, standard-setters, regulators, and CAQ experts. New content will be posted regularly, including custom pieces developed by our technical teams.
Here is a roundup of the CAQ’s recent content:
- Key Auditor and Audit Committee Considerations
- 10-Q Considerations during COVID-19
- Going Concern: Management and Auditor Responsibilities
- COVID-19 Considerations for Non-GAAP Financial Measures and Performance Metrics
- Managing Fraud Risk, Culture, and Skepticism during COVID-19
On April 24, the Anti-Fraud Collaboration (AFC), with support from Holly Tucker (Deloitte LLP) and Margot Cella (CAQ), presented at the Ethic’s and Compliance Initiative’s first virtual event, Impact 2020. Their session, “Mitigating Fraud Risk in Times of Uncertainty,” highlighted how critical it is for companies to acknowledge the heightened fraud risk during the COVID-19 crisis due to increased pressure on staff, opportunity among bad actors to commit fraud, and rationalization that fraud is justified in this challenging environment. Additionally, Tucker and Cella reinforced that companies should expect a lag time of three months to one year from when a fraud incident occurs to when it’s uncovered. To deter and detect fraud early, members of the financial reporting supply chain must maintain extreme skepticism.
For more on this topic, read the AFC’s resource Managing Fraud Risk, Culture, and Skepticism during COVID-19.
The Access to Audit Personnel Program Grants Five New Awards
The CAQ and the American Accounting Association have made five new awards under the Access to Audit Personnel Program. Now in its eighth year, the program connects academics with audit practitioners to participate in research projects. Visit the list of 2020 winners.
The Access to Audit Personnel Program will connect these researchers with approximately 700 auditors from the CAQ Governing Board firms, bringing the total number of study participants to over 4,000 auditors for 31 grants awarded since the program’s inception.
The 2021 Request for Proposals, which explains the evaluation criteria the review committee uses, is now available on the CAQ website. Proposals are due by Thursday, February 4, 2021.
Through Discover Audit, the CAQ is collaborating with the career experts at Roadtrip Nation to create a community where auditing and accounting professionals can share their stories with fellow and future auditors to learn from—and grow with—each other.
Everyone has a story about how they got to where they are today—and every story holds lessons. Share Your Road today to help students find their path to the audit profession.
The CAQ welcomes Yuri Zwick this month as a new Professional Practice Fellow. In his new role, Zwick will help guide the CAQ’s professional practice and public policy activities throughout the next 18 months.
Zwick joins the CAQ from EY’s Washington, DC, office and brings more than 10 years of experience leading integrated financial statement audits of multinational publicly traded companies in the aerospace and defense, manufacturing, and insurance industries. He holds a BA in finance and an MS in accounting from Michigan State University. Zwick is also licensed as a CPA in Florida and North Carolina.
CAQ in the News
- Reuters: Remote Auditing During Pandemic: Zoom and Drones, April 29, 2020
- Bloomberg Tax: Latest Coronavirus Impact on the State of Accounting, April 28, 2020
- Compliance Week: CAQ Exec: How Audit Must Adapt amid Coronavirus Challenges, April 27, 2020
- Journal of Accountancy: Auditors Displaying Dedication during Pandemic, CAQ’s Lindsay Says, April 24, 2020
- Accounting Today: Top Trends in Auditing Webinar, April 21, 2020
- Accounting Today: Why I Have Confidence Auditors Are Ready to Meet This Time of Economic Uncertainty from Coronavirus, April 7, 2020