All Accounting & Auditing articles – Page 103
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Blog
FASB Mulls Deferral on New Revenue Rule
Image: FASB will review research behind a possible delay in the new revenue recognition standard. The board might also consider allowing early adoption, currently prohibited under FASB’s standard. SEC Chief Accountant James Schnurrif said, “If the parties determine there are implementation issues that require additional standard setting, I would think ...
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Blog
Study Finds Blind Spot in Audit Quality Reviews
New research suggests audit reviewers may sometimes give audit teams the benefit of the doubt when reviewing a team’s work. The study found reviewers who had no knowledge of any ill feelings on the part of the audit manager reached judgments consistent with the audit evidence. Those who were aware ...
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Blog
Internal Audit Wrestles With Pace of Change, Survey Suggests
A PwC poll suggests internal audit still struggles to keep up with the rapid pace of change in the business environment. Nearly 70 percent of organizations said they are going through or have recently gone through a significant transformation in the business, yet only 11 percent of chief audit executives ...
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Blog
The Strains Emerge on Revenue Standard Convergence
Here we are with a converged standard for revenue recognition, a profound achievement for financial reporting. Now comes the hard part, Compliance Week columnist Scott Taub writes. Already we see some differences in how to interpret the standard in the United States and overseas, he writes, and we’ll need some ...
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Article
Report Spotlights the Underbelly of ‘Audit Politics’
Image: A new report finds corporate political pressure on chief audit executives to alter audit plans or results is “extensive and pervasive,” and it underlines the need for audit professionals to master the art of office politics. “We were really surprised by the extent of pressure,” says Larry Rittenberg, co-author ...
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Blog
Former CIA Inspector General Joins KPMG
Audit, tax and advisory firm KPMG has appointed David Buckley, former Inspector General for the Central Intelligence Agency (CIA), as a managing director in its Forensic Advisory Services.
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Blog
New Lease Accounting May Favor IFRS Filers
Image: New standards on accounting for leases are likely to be more flattering to the bottom lines of companies that use international accounting standards rather than U.S. GAAP, the International Accounting Standards Board said recently. Beth Paul, a partner with PwC, said during a webcast that the key difference will ...
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Blog
Big 4 Lose Audits to Smaller Firms in 2014, Data Shows
Big 4 firms lost a combined 64 public company audit engagements in 2014 as second-tier national firms snatched up a combined 58 new clients, according to Audit Analytics. The company’s annual summary of auditor changes says KPMG is the only Big 4 firm to win more new engagements than it ...
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Article
Audit Voices Try to Calm Tensions on Evidence
Image: Leaders of the auditing world are calling for a truce in arguments between internal and external auditors over how much evidence external auditors should collect themselves while scrutinizing internal controls—and are calling on audit committees to intervene earlier to prevent such disputes. “Essential value will be lost if external ...
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Blog
Deloitte Advances Ucuzoglu to Lead Audit Practice
Image: After Deloitte advanced its head of audit to CEO in February, the firm has appointed Joseph Ucuzoglu chairman and CEO of subsidiary Deloitte & Touche. Ucuzoglu says he has a handful of near-term priorities that focus on innovating the audit practice to elevate audit quality. “We want to really ...
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Blog
Regulator Roasts Fannie Mae’s CAE Selection
The Federal Housing Finance Agency has provided a primer for corporate audit committees on how not to appoint and manage a chief audit executive. The FHFA’s inspector general has released a detailed report criticizing Fannie Mae’s selection of a chief audit executive in 2013, calling the audit committee’s process “far ...
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Resource
e-Book: HCM Compliance Update 2015
In an ever-changing regulatory landscape, tax compliance remains top of mind for compliance professionals and business leaders. Whether it is adhering to federal and state regulatory requirements, or making sure that all transactions are accounted for, one minor misstep can usher in a series of new risks. Moreover, as technology ...
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Blog
Deloitte Analytics Platform Accelerates Internal Audit Transformation
Smarter, faster, and better are all important desires of the modern internal audit organization. In answer to these demands, Deloitte this week introduced a new advanced analytics platform to offer internal auditors a comprehensive way to support the end-to-end audit process combined with state-of-the-art data visualization, risk sensing, and analytic ...
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Blog
Franzel Reveals Progress in Internal Control Audits
Image: PCAOB member Jeanette Franzel said to expect improvements in the audit of internal control once 2014 audit inspections are published. “Preliminary results of the 2014 inspections indicate that some improvements have been seen in the area of auditing internal control,” Franzel said at the recent IIA annual conference. “That ...
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Blog
PCAOB Wraps 2013 Reports With Grant Thornton
The Public Company Accounting Oversight Board has published a tough report on Grant Thornton, finding problems in 20 of 36 audits inspected, a failure rate of 55 percent. Inspectors said the deficiencies were significant enough to conclude auditors did not obtain sufficient audit evidence before arriving at their conclusions. Details ...
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Blog
SEC Approves XBRL Updates for 2015 GAAP
The SEC has approved FASB’s XBRL taxonomy for 2015 U.S. Generally Accepted Accounting Principles, clearing the way for companies to rely on it as early 2015 filers approach their financial statement filing dates and XBRL submissions. According to FASB, the 2015 Taxonomy contains far fewer changes than prior years. More ...
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Article
Consolidation Rule’s Consequences More Than You Expect
Image: A new rule on consolidating entities into a parent company’s financial statements might reach well beyond the original problem it aimed to fix. Financial reporting executives should prepare to take inventory of the entities in your enterprise and see how they may need to roll onto the balance sheet. ...
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Blog
Survey: Internal Audit Gaining Ground on Cyber-Risks
Image: Protiviti’s recent survey of more than 800 internal audit professionals reports that half of respondents said a cyber-security evaluation is included in their current audit plan, and 60 percent of those organizations use the National Institute of Standards and Technology cyber-security framework to evaluate risks. Protiviti EVP Brian Christensen ...
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Blog
Globally, Audit Inspectors Find Big Problems
U.S. audit regulators are not the only ones alarmed by high rates of busted audits. Around the globe, audit regulators who are members of the International Forum of Independent Audit Regulators compared notes and found nearly half of the audits they inspected in 2014 contained deficiencies that suggest the audit ...
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Blog
Latest GRC Survey Shows Disconnect on Risk
Yet more findings—these from Grant Thornton—reveal that audit committees and chief audit executives differ on priorities. According to the survey, audit committees rank financial risk as most important for internal audit, followed by compliance, operational, and strategic risks. CAEs, however, give compliance risk top billing, followed by operational, financial, and ...