Search results
Results from the WOW.Com Content Network
Currently, there is no PCAOB requirement for companies to rotate their audit firm. However, the PCAOB has explored the possibility of making firm rotation a standard in 2011. The PCAOB wanted to see if there were any more ways to ensure auditors could maintain their independence and professional skepticism.
While AI can make the auditing process easier, there are concerns that AI will dismiss audit evidence that humans would not have overlooked due to immateriality. [3] Currently, many auditors that use AI are utilizing its abilities to analyze evidence efficiently, but are still depending on human judgment and professional skepticism. [3]
SAS 99 defines fraud as an intentional act that results in a material misstatement in financial statements. There are two types of fraud considered: misstatements arising from fraudulent financial reporting (e.g. falsification of accounting records) and misstatements arising from misappropriation of assets (e.g. theft of assets or fraudulent expenditures).
As of April 1, 2017, AICPA launched a new version of the Uniform CPA Exam. This updated version is the result of comprehensive research and places an increased emphasis on critical thinking, analytical ability, problem-solving and professional skepticism.
Generally Accepted Auditing Standards, or GAAS are sets of standards against which the quality of audits are performed and may be judged. Several organizations have developed such sets of principles, which vary by territory.
Joseph Edmund Sterrett outlined the debate and issues in setting up a Code of Professional Conduct in his address to the annual meeting of the American Association of Public Accountants in 1907 [2] The earliest "official" version of the code of professional conduct among American accountants was issued by the American Institute of Accountants on April 9, 1917.
Macy's said an employee intentionally made accounting errors totaling $132 million to $154 million. Auditing experts told BI the available evidence suggests a failure of internal accounting controls.
Professional skepticism is an important concept in auditing. It requires an auditor to have a "questioning mind", to make a critical assessment of evidence, and to consider the sufficiency of the evidence. [30]