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New CAQ Alerts Summarize Potential Risk Areas for Upcoming Audit Cycle

Tuesday, October 4, 2016

Alerts Address Key Auditing Considerations, Audits of Brokers and Dealers

Washington, DC – The Center for Audit Quality (CAQ) has published two new member alerts that can help public company auditing firms address potential risks in a proactive and accelerated manner.

“The CAQ and the public company auditing profession are deeply committed to continuously improving audit quality in order to better serve investors and capital markets,” said CAQ Executive Director Cindy Fornelli. “As risks and regulatory priorities evolve, the CAQ will continue to issue alerts and disseminate the latest resources for the benefit of our members and others.”

The first of these alerts, Select Auditing Considerations for the 2016 Audit Cycle, identifies and discusses some of the more judgmental or complex audit areas for the upcoming audit cycle, including some of those identified by the Public Company Accounting Oversight Board (PCAOB) through its inspection process and published in recent PCAOB Staff Inspection Briefs.

Select Auditing Considerations for the 2016 Audit Cycle covers the following topics:

  1. Improving Transparency through Disclosure of Engagement Partner and Certain Other Participants
  2. Improper Alteration of Audit Documentation
  3. Effective Communication with Audit Committees
  4. Assessing and Responding to Risks of Material Misstatement
  5. Internal Control over Financial Reporting (ICFR)
  6. Segment Identification and Disclosure
  7. Going Concern
  8. Additional Considerations for the 2016 Audit Cycle

The second of these alerts, Select Auditing Considerations for the 2016 Audit Cycle for Brokers and Dealers, provides considerations for the 2016 audit cycle that may be relevant for audit and attestation engagements of brokers and dealers registered with the U.S. Securities and Exchange Commission (SEC), including areas that have recently been the subject of attention and focus by the PCAOB in its inspection process.

While these CAQ member alerts highlight certain areas for consideration, they should not be relied upon as definitive or all-inclusive and should be read in conjunction with the applicable rules, standards, and guidance in their entirety.


About the CAQ

The Center for Audit Quality (CAQ) is an autonomous, nonpartisan public policy organization dedicated to enhancing investor confidence and public trust in the global capital markets. The CAQ fosters high quality performance by public company auditors, convenes and collaborates with other stakeholders to advance the discussion of critical issues requiring action and intervention, and advocates policies and standards that promote public company auditors’ objectivity, effectiveness, and responsiveness to dynamic market conditions. Based in Washington, DC, the CAQ is affiliated with the American Institute of CPAs. For more information, visit