Being an Independent Auditor Is So Much Easier (and Effective) If You Are a Total Prick
I love HGTV in fact but not in appearance. No one looks at me and thinks, "I bet that guy TiVos Yard Crashers, Curb Appeal, and House Hunters," but I do. And although I think Hilari was robbed in Design Star All Stars, I never really talk about it with anybody. Fortunately, there is no […]
A Friendly Reminder for Auditors: Be Skeptical
If you're an opiner who has been suffering from massive memory loss or ignoring your professional purpose, don't fret. Master audit firm lobbyist Cynthia Fornelli has your playabook: “Independence, objectivity and skepticism, I think, are fundamental foundational elements of audit quality,” Fornelli said in an interview at the Accounting Today offices on Friday. Now that […]
Center for Audit Quality Concerned That No One, Outside of a Few Auditors, Knows What Auditors Actually Do
The CAQ’s continuing dialogue with individual investors indicates that many in the marketplace do not fully understand the scope of the audit process and the responsibilities placed on public company auditors. The In-Depth Guide to Public Company Auditing will help to bridge that information gap. The new Guide describes how a public company audit firm decides to accept a new audit engagement, how it assesses the risk that the financial statements contain material misstatements as part of determining the audit’s scope, and then how the auditors perform and report their findings – all in plain English. [Cindy Fornelli/CAQ, Guide]
Center for Audit Quality Thrilled That SEC Study Recommends Auditors Continue Auditing
I am pleased that the SEC’s Office of the Chief Accountant’s thoughtful study recommends retention of Section 404(b) of the Sarbanes Oxley Act for companies whose market capitalization is between $75 and $250 million. Section 404(b) requires independent auditors to attest to management’s assessment of the effectiveness of its internal controls over financial reporting […]. The study concluded that costs of Section 404(b) compliance have declined and financial reporting is more reliable when the auditor is involved with ICFR assessments. Importantly, the study found that investors generally view the auditor‘s attestation on ICFR as beneficial. [Cindy Fornelli/CAQ]