Tag: Audit

AICPA Adopts New Definition of Materiality

In December 2019, the Auditing Standards Board (ASB) issued Statement on Auditing Standards No. 138, Amendments to the Description of the Concept of Materiality (SAS 138), which amends the definition of materiality. SAS 138 is effective for audits of financial statements for periods ending on or...


Critical Audit Matters –What is Actually Being Communicated?

The Public Company Accounting Oversight Board (PCAOB) started requiring financial statement auditors of large accelerated public company filers to include “critical audit matters” in audit reports for fiscal years ending on or after June 30, 2019. All other nonexempt filers will begin including...


Tax vs Audit: How to Choose a Career Path

In accounting, your career could go in many different directions, but most of your choices will fall under tax or audit. So which track is right for you? It really is all about the right fit – which one better accommodates your lifestyle and career goals? What’s going to make you happy?...


Auditors Have New Responsibilities Relating to Other Information in Annual Reports

Statements on Auditing Standards No. 137, The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports, was issued in July 2019.  It is codified under AU-C Section 720 of the AICPA Professional Standards.  The standard applies only to a single document or...


AICPA Releases New SAS on Auditor Reporting

Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements, was recently released by the AICPA’s Auditing Standards Board. The overall objective is to update the form and content of the...


An Auditor’s Responsibility for Cybersecurity Risks

Cybersecurity has rapidly become a significant risk to businesses as breaches of information may result in financial and reputational damage, diminished investor confidence, and exposure to potential regulatory fines. Cybersecurity risks and controls are within the scope of the financial statement...