Flip the switch on non-conformity with 5 free audit quality resources
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Flip the switch on non-conformity with 5 free audit quality resources

3 years ago · 2 min read · AICPA Insights Blog

You strive to perform top-notch audits of your clients’ financial statements. You research the company and their industry, meet with the client, gather necessary information and develop and execute a plan. Having resources on hand can streamline the process.

Five years ago, the AICPA formed its Enhancing Audit Quality (EAQ) initiative and changed how we develop resources to help auditors. The EAQ team, working with the Audit and Attest Standards, Peer Review, Engagement and Learning Innovation, Center for Plain English Accounting, and Assurance and Advisory Innovation teams, analyzes data from peer reviews and other sources, identifies where noncompliance with professional standards occurs and develops resources to help firms in those areas. So far, we’ve focused on: risk assessment, internal control, audit documentation, employee benefit plan audits, peer review, quality control, single audits, SOC engagements and auditing accounting estimates.

To celebrate the fifth anniversary of the EAQ program, we’ve compiled five free resources you can use to improve the quality of your audits.

  1. Audit risk assessment tool - Risk assessment is a core component of every audit. However, a recent survey of peer reviewers found over half of 400 audits they reviewed were non-conforming because of non-compliance with the risk assessment standards (AU-C Sections 315 and 330). This comprehensive template will help you identify, assess and document your planned response to risks of material misstatement and make your audit more effective and more efficient. It is designed to be used alongside your firm’s existing planning programs.

  2. Risk assessment staff training - Educate your firm’s professionals on proper risk assessment and response as well as common misconceptions to avoid. Use this PowerPoint presentation with speaker notes and this staff training case study.

  3. Internal control over financial reporting tool - A recent Peer Review Program survey found over 40% of audits didn’t comply with AU-C Section 315 and/or AU-C Section 330 because auditors didn’t properly address their clients’ controls. This tool helps auditors map out controls relevant to an audit and the associated risks.

  4. Internal inspection aids - We’ve developed internal inspection aids focused on risk assessment, documentation and internal control. These tools will help you identify non-compliance during your firm’s internal inspection. They also provide guidance on how those findings should be addressed.

  5. Dual purpose working paper for single audits - Members performing single audits will want to check out this working paper. It’s intended to support compliance with AU-C section 230 by illustrating auditor documentation for a dual-purpose test of compliance and internal control over compliance for several compliance requirements.

Audit quality is a continued area of emphasis for the profession. Use our free resources throughout the audit process. We’re sure you’ll find them valuable.

Susan S. Coffey, CPA, CGMA

Susan S. Coffey, CPA, CGMA is CEO - Public Practice for the American Institute of CPAs.

In this role Coffey is responsible for the professional activities, content and delivery of all AICPA public accounting technical and self-regulatory functions, which support and enhance the quality of the work of U.S. CPA firms.

This work includes leading AICPA's initiatives related to professional standards of practice; business and financial reporting, audit, assurance and business reporting innovation; taxation; specialization and credentials; professional ethics; practice monitoring; audit quality centers; and the Uniform CPA Examination. Coffey is also responsible for global relations and alliances with organizations, such as the International Federation of Accountants and the Global Accounting Alliance, to support and strengthen the global accountancy profession and the value of the U.S. CPA abroad.

Coffey's responsibilities span a number of diverse communities and stakeholders, both domestic and international, giving her a unique, global perspective. Her wide range of experience allows her to bring a broad view to strategic planning, risk management and problem-solving, which guide the AICPA as they execute on their public interest activities, develop opportunities for CPA firms, and work with firms and other key stakeholders.

Coffey is a licensed CPA in the States of New York and New Jersey, as well as a CGMA. She is a member of the American Institute of CPAs and the New Jersey Society of CPAs. She is also a member of the Professional Practice Executive Committee of the Center for Audit Quality, an AICPA affiliate, as well as a member of the Advisory Council for Prince Charles' Accounting for Sustainability Project. Coffey has been honored over the years by being recognized as one of the Most Powerful Women in Accounting by the CPA Practice Advisor and by inclusion on Accounting Today's Top 100 Most Influential People in Accounting list.

Prior to joining the AICPA, Coffey was with PricewaterhouseCoopers' accounting and auditing practice. She holds a Bachelor of Science degree in accounting from Fairfield University in Fairfield, Connecticut.

Carl R. Mayes Jr., CPA

Carl Mayes is the AICPA’s Senior Director – Audit and Accounting Quality. Carl oversees the AICPA’s audit-related offerings, including learning, publications, and conferences. He is responsible for the Enhancing Audit Quality (EAQ) initiative and AICPA Not-for-Profit Section. He previously directed the CPA Evolution initiative, which is transforming the path to CPA licensure, and served on the AICPA Peer Review team.

Carl is a licensed CPA in North Carolina and a Certified Association Executive. Before joining the AICPA, he worked as an auditor for regional and local public accounting firms.

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