Faithfully applying the principles of ASC Topic 280 can help financial statement preparers avoid problems in a high-risk area.
Internal control over financial reporting
The AICPA Auditing Standards Board established requirements and provided guidance that apply only when an auditor is engaged to perform an audit of internal control over financial reporting that is integrated with an audit of financial statements.
Fifty-five percent of North American chief audit executives have been asked at least once to omit or modify an important audit finding, according to new research.
Here’s how companies with outsourced service providers can meet the requirements of the updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Risk concerns have put a strain on audit committees, who say they need more time and expertise to exercise proper oversight.
Revenue recognition and internal control over financial reporting are among the key risk factors in the 2014 audit cycle, according to an alert by the Center for Audit Quality (CAQ). The alert details seven key areas of potential risk in auditors’ work.
A well-known framework for risk management is scheduled for another update. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) announced Tuesday that it is undertaking a project to update its Enterprise Risk Management—Integrated Framework, which debuted in 2004. Organizations use the framework to help them manage uncertainty, consider
The early stages of implementation are over for many companies using the updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In 2013, the framework—which had been in use since 1992—was updated to reflect changes in the business environment. U.S. public companies have been
Proposed changes to guidance followed by internal auditors include a new mission statement and a set of 12 core principles that highlight what effective internal auditing looks like in practice. The Institute of Internal Auditors (IIA) on Monday announced the proposed changes to the International Professional Practices Framework, which is
The authors distill research published in tax and accounting journals of interest to busy practitioners. This article focuses on academic research in ethics.
CPAs can assess the effectiveness of their organization’s information technology controls by using Principle 11 of the newly updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). See a step-by-step procedure for applying Principle 11 to IT controls.
The demands on internal audit have increased significantly in recent years as technology has advanced, regulation has become more rigorous, risks have emerged, and companies have sought more business insights from internal audit teams. “That bar continues to rise,” FedEx Chief Audit Executive Robert King, CPA, said Tuesday during a
U.S. public companies are operating in an environment full of both risk and opportunity as they prepare for their annual shareholder meetings. Cyberthreats, disaster planning, and political and economic unrest are among many factors that make the current climate hazardous for many companies. Although high values in the stock market
When does a company pull the trigger on an acquisition or investment? When is expanding into a new market a prudent choice? And when is the right time to hire additional personnel or change employee benefits? These are among the many questions organizations consider through a lens of strategic opportunities
Auditing of internal control over financial reporting, a topic that has received a lot of attention from the PCAOB this year, is among the key risk factors for the 2013 audit cycle, according to a new Center for Audit Quality (CAQ) alert. The alert describes six key areas of potential
A mapping exercise is one of the most important activities for any organization implementing the updated 2013 internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), experts say. The updated framework includes 17 newly described principles across the five components of internal control that were
Health care regulations associated with the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148, have created new opportunities for internal auditors. But internal auditors may need to get more familiar with PPACA’s provisions to help their organizations understand the risks associated with the law and their organization’s preparedness to
One of an audit committee’s most important responsibilities is to oversee the organization’s internal audit function. Here are 10 steps audit committees can take to facilitate proper oversight and direction of internal audit: Evaluate the current and projected scope of internal audit coverage of risk management and governance. Internal auditors
Even as assurance and compliance responsibilities are expanding for internal auditors, a significant shift in their strategic duties is on the horizon, according to a new survey. More than half (54%) of respondents expect that in the next two years, internal audit’s primary mandate will be providing stakeholders with business
The U.S. House of Representatives on Monday approved a bipartisan bill that would prohibit the PCAOB from requiring mandatory audit firm rotation for public companies. The bill, sponsored by Reps. Robert Hurt, R-Va., and Gregory Meeks, D-N.Y., was introduced on April 15. It would amend the Sarbanes-Oxley Act of 2002