In the Big Audit model—by which the world's large public companies engage the international networks of the Big Four to provide financial statement assurance for…
ICYMI | Machine Learning in Auditing
Current and Future Applications
In Brief Machine learning provides the potential for significant improvements in audit speed and quality, but also entails certain risks. The authors provide a general…
Textual Analysis for Risk Profiles from 10-K Filings
Evidence from Audit Opinions
In Brief Technology can be used by auditors to evaluate the risks presented by engagements. This article introduces a Natural Language Processing (NLP) approach to…
ICYMI | The Importance of Audit Partners’ Background
Insights from the New PCAOB Form AP
Public company audit partners are trusted as watchdogs of the capital markets. A forthcoming study by the authors of this article finds that audit partners'…
ICYMI | The PCAOB as Third-party Payer
A Proposal to Address Concerns over Public Company Auditor Independence
The idea of introducing a third-party payer into the auditor-client relationship has received some attention from regulators, academics, and accounting firms in recent years. Years…
Ensuring Integrity: A New Strategic Vision for Improving Audit Quality
Annual Auditing Conference at Baruch
The 14th Annual Audit Conference, hosted by Baruch College on December 3, 2019, once again brought together auditors, regulators, standards setters, and preparers to discuss…
Keynote Address: William D. Duhnke III
Annual Auditing Conference at Baruch
Currently, the PCAOB is in the middle of a significant change. As many of you know, I joined the PCAOB just under two years ago.…
In Brief Auditors bear many responsibilities to their clients, but they also have a duty to uphold the public trust. The negative actions of clients…
A 2020 Global Auditing Forecast
What Might the New Year Bring?
In the Big Audit model—by which the world's large public companies engage the international networks of the Big Four to provide financial statement assurance for…
Five years ago, I was working on an audit near Sacramento, Calif., having lunch with my manager and another auditor from the CPA firm where…
ICYMI | The Audit Report Returns to Its Roots
An Historical Perspective on Critical Audit Matters
The evolution of the standard audit report has been slow and cautious over the past century. Most recently, in 2011, the AICPA's Auditing Standards Board…
Internal auditors are tasked with bringing objectivity to the assurance functions they perform within an enterprise. They are also increasingly called upon to provide a…
Internal Auditing: Trends and Challenges
An Interview with Mark Martinelli
Internal auditors are tasked with bringing objectivity to the assurance functions they perform within an enterprise. They are also increasingly called upon to provide a…
Machine Learning in Auditing
Current and Future Applications
In Brief Machine learning provides the potential for significant improvements in audit speed and quality, but also entails certain risks. The authors provide a general…
Since the issuance 14 years ago of the current audit documentation standards [now AU-C 230 and PCAOB Auditing Standard (AS) 1215, respectively], which are more…
The development of auditing software and technology applications has lagged behind that of other practice areas, but a steady evolution of automation and data analytics…
Audit Implications of the New Revenue Reporting Standard
A Panel Discussion
About the Panelists The panel featured Meredith Canaday, CPA, partner in the department of professional practice at KPMG; Sheri Fabian, technical partner in the national…
Auditors serving smaller businesses know that those clients often need help navigating the highly technical and overwhelming body of accounting standards. They also know that…
The Importance of Audit Partners’ Background
Insights from the New PCAOB Form AP
Public company audit partners are trusted as watchdogs of the capital markets. A forthcoming study by the authors of this article finds that audit partners'…
About the Panelists The panel featured Brian Croteau, CPA, partner at PricewaterhouseCoopers; Kyle Owens, CPA, professional practice standards senior manager at Crowe LLP; and Phil…
I have a list of projects that the ASB [Accounting Standards Board] is working on, in two parts. I want to give you a little…
The PCAOB as Third-party Payer
A Proposal to Address Concerns over Public Company Auditor Independence
The idea of introducing a third-party payer into the auditor-client relationship has received some attention from regulators, academics, and accounting firms in recent years. Years…
ICYMI | CAM Vs. KAM: A Distinction without a Difference?
Making Judgments in Reporting Critical Audit Matters
In Brief Since the last economic downturn, attention has turned to the auditor's report, which had remained largely unchanged for decades. In response to a…
Improving Audit Quality
Highlights from the 13th Annual Baruch College Audit Conference
The 13th Annual Audit Conference, hosted by Baruch College in New York City on December 4, 2018, once again brought together auditors, regulators, standards setters,…
Auditors serving smaller businesses know that those clients often need help navigating the highly technical and overwhelming body of accounting standards. They also know that…
Much has changed since the PCAOB began its inspection program in 2004. In just the last 10 years, the number of auditing firms registered with…
In Brief Corporate sustainability reporting is becoming more widespread with each passing year, and with that growth comes the need for companies to back up…
ICYMI | Unsolved Problems in Auditing: A Half Century Retrospective and an Update
2016 Max Block Award Winner: Outstanding Article in the Area of In Focus/Feature
Auditing has been an ever-changing discipline since its birth over 100 years ago, but how much have the challenges auditors face really evolved over the…
I was reading the December 2017 issue of The CPA Journal, and saw letters (“Continuing the Discussion on the Meaning of Fiduciary,” Vincent J. Love and…
Audit vs. Fraud Examination
What’s the Real Difference?
In Brief Contrary to what many think, the typical audits of financial statements do entail certain responsibility for the detection of fraud. The author examines…