Yesterday, the Center for Audit Quality (CAQ) issued CAQ Alert No. 2015-07, which consists of two alerts: (1) Select Auditing Considerations for the 2015 Audit Cycle (the “audit alert”) and (2) a companion alert, Select Considerations for the 2015 Audit Cycle for Brokers and Dealers (the “broker-dealer alert”). The audit alert and the broker-dealer alert discuss topics that were highlighted in the PCAOB’s October 2015 and August 2015 staff inspection briefs, respectively.

Topics discussed in the audit alert include:

• Professional skepticism.
• Internal control over financial reporting.
• Risk assessment and audit planning.
• Supervision of other auditors and multi-location audit engagements.
• Testing issuer-prepared data and reports.
• Cybersecurity.
• Revenue recognition.
• Auditing accounting estimates, including fair value measurements.
• Related parties and significant unusual transactions.

Topics discussed in the broker-dealer alert include:

• Staff inspection brief.
• Independence requirements.
• Revenue recognition.
• Engagement quality review.
• Related parties.
• Reliance on records and reports.
• Auditing accounting estimates, including fair value measurements.
• Supplemental information accompanying financial statements.
• Customer protection rule.
• Audit documentation.

For additional information, see the press release on the CAQ’s Web site.

Download