Auditing standards current issues in accounting

I commend the Corporate Governance Center for its focus on issues that impact public policy. This focus provides important input and new perspectives for regulators and others considering the public policy objectives of protecting investors and promoting the public interest in financial reporting and auditing.

Auditing standards current issues in accounting

I commend the Corporate Governance Center for its focus on issues that impact public policy. This focus provides important input and new perspectives for regulators and others considering the public policy objectives of protecting investors and promoting the public interest in financial reporting and auditing.

I know there are many accounting students in the audience today, and I'm pleased that you have the opportunity here at the Corporate Governance Center to focus on issues of public policy and investor protection, in Auditing standards current issues in accounting to all the technical knowledge that you will need to pass the CPA examination.

Today I will briefly discuss some historical perspectives that lend insight into the current state of the profession and the PCAOB's role.

Also today, I want to charge you with the duty of knowing that as members of the next generation of CPAs you will play a significant role in the effective functioning of our capital markets.

In fact, in your future career as a CPA, you will become a member of a community, an ecosystem if you will, responsible for producing reliable financial reporting with independent and credible audits.

That is the essential duty of the profession.

Accounting | Auditing | Financial Crisis | Issues and Insights | IFAC

And academic experts, such as those here at the Corporate Governance Center, provide invaluable insights into the dynamics and pressures that impact practitioners and their regulators. Throughout my speech today I will discuss some current trends and significant challenges in the accounting and auditing profession.

In facing such challenges, I believe that it is important for members of the profession to understand 1 the context around the auditing standards that you will use, 2 the ethical standards to which you should adhere, and 3 the public policy issues of investor protection that will be the foundation for the professional judgments you will make on a daily basis.

And, above all else, remembering that if you are working within or auditing a publicly traded company, your true client is the investor. Students of accounting and auditing — or any other profession, for that matter — should understand the evolution of the major applicable theories and principles of their profession, and where those theories and principles are still subject to tensions, reconsideration, and debate.

The history of the profession, the various public policy choices made along the way, and the tensions that arose during the many business cycles and crises have framed the current governance and accountability model that supports our capital markets. Although today I will focus mainly on recent and current issues, I want to emphasize the importance of studying the history of the accounting and auditing profession, the major issues that have been debated over the years, and the related responses and evolution within the profession.

Accounting and auditing as they exist in the U. After the loss of public confidence in the U. Senate in and to examine the causes of the stock market crash and explore potential reforms. The central questions dealt with whether and how companies should provide investors with detailed financial statements, and what type of assurance could be provided to the public that those financial statements were reliable.

Over the intervening decades, there have been numerous studies, investigations, Congressional hearings and debates about reforms to the accounting profession. I won't enumerate those today.

But to illustrate the substance and magnitude of these activities, I will refer you to a General Accounting Office GAO [1] review of the accounting profession.

The report identified 27 major studies performed during those 23 years. The report summarized major recommendations in the areas of auditor independence, audit quality, accounting and auditing standards, and other reporting and auditor services.

The GAO also pointed out areas where additional progress was needed, including auditor independence, responsibility for detecting fraud, reporting on internal controls, and standard setting.

Many subsequent studies were also conducted during the s.

Auditing standards current issues in accounting

One of my areas of responsibility involved GAO's oversight and evaluation work dealing with the accounting and auditing profession. Then in the late s and into the s, a massive number of financial reporting and auditing failures caused a collapse in confidence in financial reporting and in the integrity of the financial markets.

After engaging in months of study in light of the significant failures, [4] Congress passed the Sarbanes-Oxley Act in July [5] to restore confidence in financial reporting and to improve the independence and quality of audits. The Sarbanes-Oxley Act and 10 Years Later As we mark the 10th anniversary of the Sarbanes-Oxley Act, it is important for you to understand the context and history surrounding your own "entry-point" into the profession.

One of the major tenets of financial reporting that underwent reconsideration during the debates leading up to the Sarbanes-Oxley Act was the need for effective oversight and monitoring of the financial audits that serve investors and the capital markets.

The financial reporting and auditing failures, corporate bankruptcies, and other major corporate scandals in the early s — involving companies such as Enron, WorldCom, Sunbeam, Xerox, Waste Management, and Global Crossing, among others — highlighted significant problems in the model of auditor self-regulation and prompted Congress to re-examine the issue.

In order to identify for Congress the regulatory structure in place, the GAO depicted the complicated and — what it and the profession's own audit oversight body [6] said was an — "ineffective" self-regulatory model.

Government Accountability Office, "Accounting Profession: For an older, but more detailed description of the profession's self-regulatory framework, see Public Oversight Board, "Audit Quality: The Profession's Program," available at www. Notice the key players in this model and their relationship to each other: The system of auditor self-regulation shown in the bottom half of the graphic was replaced when Congress passed the Sarbanes-Oxley Act, ending more than years of self-regulation by the public accounting profession in the United States.This course looks at current developments in the application of generally accepted government auditing standards in the United States, including the implementation of recently issued uniform cost principles, audit, and administrative requirements for entities that receive awards from the U.S.

federal government. Course Description. Current Developments in Accounting and Auditing provides an overview of economic conditions, audit risks, accounting for leases, cyber fraud, recent accounting standards, Financial Accounting Standards Board (FASB) updates, and Auditing Standards Board (ASB) updates.

Dr. Ray Thompson covers many current . The PCAOB establishes auditing and related professional practice standards for registered public accounting firms to follow in the preparation and issuance of audit reports.

Standards Auditing Standards. Auditing Accounting Estimates full-text: April The Codification of Statements on Auditing Standards is generally issued in January, The current U.S.

Auditing Standards are available at the AICPA's Web site. Below is a list of older codifications from the Professional Standards. Date Official title. Current Issues & InsightsAdoption & Implementation The development and implementation of clear, The International Public Sector Accounting Standards Board develops standards, guidance, and resources for use by public sector entities around the world for preparation of general purpose financial statements.

Current Issues & . It is a pleasure to be here today in Knoxville at the University of Tennessee Corporate Governance Center to discuss current issues and trends in public company auditing. The report summarized major recommendations in the areas of auditor independence, audit quality, accounting and auditing standards, and other reporting and auditor.

Auditing Standards