All Audit Quality articles – Page 2

  • Blog post

    Global report suggests better leveraging audit committees


    Audit regulators are pondering how audit committees can be better leveraged to raise the bar on audit quality, including whether audit committees should have a more direct line of contact with audit regulators.

  • Article

    Auditors: How can they be appointed independently?


    A series of severe fines and reprimands involving auditor misconduct raises a thorny question: Could, or should, organizations have independently appointed auditors?

  • Blog post

    BDO 2015 report shows more restatements, withdrawn opinions


    Roughly half the audits inspected at BDO USA contained deficiencies in 2015, several serious enough to result in restatements and withdrawn ICFR opinions.

  • Blog post

    Regulators globally say 42 percent of audits are deficient


    Audit quality is an even bigger concern outside the United States, where inspectors spot deficiencies at major network firms in 42 percent of the audits they check.

  • Blog post

    Execs use audit insights to improve business, poll says


    A Deloitte poll says C-suite executives and audit committee members use audit insights to improve business performance and operational processes.

  • Blog post

    Audit change data shows differences at Big 4 firms


    In the churn for new auditors, one Big 4 firm has held steady with its net number of audit clients while three others have seen net losses numbering in the 20s. Tammy Whitehouse has the results of the latest data from Audit Analytics.

  • Blog post

    2015 audit inspections show some gains, some blown opinions


    The PCAOB’s earliest 2015 inspection results show some reductions in deficient audits, but also increases in restatements and withdrawn opinions. More from Tammy Whitehouse.

  • Blog post

    PCAOB issues 2014 report on Grant Thornton, showing gains


    The PCAOB has published its last 2014 inspection report on the eight largest firms, showing gains at Grant Thornton from a year prior and slight improvement across major firms. Tammy Whitehouse reports.

  • Blog post

    FRC issues new Audit Firm Governance Code


    The U.K. Financial Reporting Council has updated its Audit Firm Governance Code in an effort to improve investors’ faith in accounting practices. Paul Hodgson reports.

  • Blog post

    PCAOB ponders possible change in inspection approach


    Word from the Public Company Accounting Oversight Board is that the inspections process could be changing. According to board member Jeanette Franzel, the agency is “exploring the potential for more random selection of audits and audit areas to inspect.” Tammy Whitehouse has more.

  • Blog post

    Study asserts companies shop for internal control audit opinions


    Audit opinion shopping—a not-uncommon practice believed to have been cut down in the post-Sarbanes-Oxley era—remains live and well in capital markets, and it’s most pervasive in the presence of competition among auditors, according to research from the American Accounting Association. More from Tammy Whitehouse.

  • Blog post

    Study links audit staffing to audit quality


    Recent academic research from professors at the University of Alabama and Louisiana State University finds where audit engagement workload is high, companies have significantly higher abnormal discretionary accruals, are more likely to restate earnings, and are less likely to get a going concern opinion even when signs of distress are ...

  • Blog post

    CAQ Chooses Path Forward on Identifying Quality Indicators


    The Center for Audit Quality, which represents auditors, has issued a new report on its effort to pilot test its approach to defining audit quality indicators and its suggested path forward on how to identify the most effective way to define and then measure audit quality. The CAQ says it ...

  • Blog post

    PwC Reports on Efforts to Raise Audit Quality


    Image: PwC has issued a report to answer questions about what it is doing to better address regulatory demands for better audits. The company is investing in technology, developing talent, and adjusting its audit approach to meet rising expectations. “We understand the importance of maintaining our focus on delivering quality, ...

  • Blog post

    Follett Joins Weaver’s Quality and Risk Management Group


    Tim Follett has joined Weaver, the largest independent accounting firm in the Southwest, as an assurance partner in the firm’s quality and risk management group. He will focus on developing tools, resources, guidance, policies and processes associated with firm compliance, risk management, administration and operations.

  • Blog post

    PCAOB Revisits Naming Engagement Partner, Audit Quality Metrics


    Audit regulators are trying again to propose a rule that would give investors more information about who is working behind the curtain when an audit firm files its final report on a company’s financial statements.

  • Blog post

    Study Says Investors Need to Know About Audit Offshoring


    Apparently doubting the quality of the audit, investors punish companies when they first learn that others from outside the principal audit firm had a hand in assuring the company’s financial statements.

  • Blog post

    Audits Failures Linked to Execution, Not Process Problems


    Image: Dec. 10—Audits fail not so often because the audit firm’s process was flawed, but because individual auditors or engagement teams fail to adhere to firm methodologies, according to Jay Hanson, a member of the PCAOB. At a national accounting conference on regulatory issues, Hanson said he sees much more ...

  • Blog post

    McGladrey Sees Improvement in 2013 Inspection Report


    Oct. 24—While KPMG was dinged by the PCAOB, McGladrey saw some improvement. The PCAOB studied 13 audits at McGladrey and found fault with four of them during its 2013 inspections of the firm. That deficiency rate of 31 percent is a step up from failure rates of 44 percent in ...

  • Blog post

    KPMG Draws Ire in 2013 Report; New Carping Over Old Quality Issues


    The Public Company Accounting Oversight Board says KPMG failed to arrive at an adequately supported audit opinion in 46 percent of the audits the agency inspected in 2013, and it failed to satisfy quality control issues raised in earlier inspections. The PCAOB flagged 23 of the 50 audits that inspectors ...