The Global CPA: Insights and Advice Monday, June 4, 2018 What are the benefits of working at a firm with a global footprint in the public company auditing profession? What are the challenges? In this Q&A on LinkedIn, CAQ Executive Director Cindy Fornelli gets insights from Chris Alabi, CPA, ACA, the CAQ’s...

Updating the Auditor’s Report: Opportunities and Challenges Tuesday, April 3, 2018 What opportunities might arise from updating the auditor’s reporting model in the United States, and what are related challenges for audit committees and others? In this post at the NACD Board Leaders’ blog, CAQ Executive Director Cindy Fornelli provides perspective on...

In this vignette, the audit team has identified a potential error in the income statement. On Monday evening, the engagement team realized that the income statement analytic showed a decrease in marketing expenses for the quarter and the year. However, the engagement team’s expectation was that the company would have...

In these vignettes, the audit team’s substantive testing detected an error in a prepaid insurance account; the company didn’t record amortization on a prepaid insurance arrangement. In the first vignette, the partner, the manager and the senior associate are discussing the design of the control over the account, how it...

In these vignettes, the focus is on breakdowns in review controls and steps external auditors take in order to evaluate the design and effectiveness of controls. The audit manager is evaluating the management review control over goodwill impairment estimates. Vignette 1 (a): A Meeting between the Audit Manager and the Company...

Under PCAOB auditing standards, the auditor should determine tolerable misstatement for the individual locations or business units. In this video, the expert panel describes some of the key challenges that auditors face in making those decisions. Download panelists’ bios

In this video, the expert panel discusses the challenges that auditors face in adequately documenting their judgments and conclusions around the risks identified in the risk assessment process. They mention the importance of articulating the variable audit response required for low, medium, and high risks. The panel also addresses this...

The implementation of new accounting standards can present a unique set of challenges for preparers (and their auditors). Public companies must begin to apply the new revenue recognition standard to annual reporting periods beginning after December 15, 2017; the new leasing standard will be applicable to annual reporting periods beginning...