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CAQ issues new audit alerts summarizing potential risk areas

  • CAQ (US Center for Audit Quality) Image

Oct 05, 2016

The Center for Audit Quality (CAQ) has issued two 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”).

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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