Richard Cornelisse

PCAOB report encourages auditors to take action to risk assessment as deficiencies were identified 

In Indirect Tax Strategic Plan on 16/10/2015 at 7:13 am

The Public Company Accounting Oversight Board today issued a report detailing significant deficiencies in registered audit firms’ implementation of and compliance with certain auditing standards related to the auditor’s assessment of and response to risk in an audit as observed during 2012-2014 inspections.

Auditing Standards No. 8 through No. 15 — together, the risk assessment standards — were adopted in 2010 and are designed to address the auditor’s assessment of and response to risk of material misstatements and the auditor’s evaluation of the results of procedures performed in an audit.

Today’s report discusses findings under the eight standards for inspections conducted in 2012, 2013, and 2014.

The Board is concerned with the number and significance of deficiencies in compliance with these auditing standards.

“Because risk assessment underlies the entire audit process, it is critical that audit firms address these findings of weaknesses in compliance with the risk assessment standards,” said PCAOB Chairman James R. Doty.

Source: PCAOB Report Encourages Auditors to Take Action in Response to Risk Assessment Deficiencies Identified in Inspections

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