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CAQ issues new audit alerts summarizing potential risk areas

  • CAQ Image

Oct 04, 2016

On October 4, 2016, the Center for Audit Quality (CAQ) published two new member alerts, “Select Auditing Considerations for the 2016 Audit Cycle” (the “audit alert”) and “Select Auditing Considerations for the 2016 Audit Cycle for Brokers and Dealers” (the “broker-dealer alert”), that can help public company auditing firms address potential risks in a proactive and accelerated manner.

Topics discussed in the audit alert include:

  • Improving transparency by disclosing the engagement partner and certain other audit participants
  • Improper alteration of audit documentation
  • Effective communication with audit committees
  • Assessing and responding to risks of material misstatement
  • Internal control over financial reporting
  • Segment identification and disclosure
  • Going concern
  • Additional considerations for the 2016 audit cycle

Topics discussed in the broker-dealer alert include:

  • Revenue recognition
  • Assessing and responding to risks of material misstatement due to fraud
  • Financial statement presentation and disclosures
  • Auditor independence
  • Related-party transactions
  • Supplemental information accompanying financial statements

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

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