Audit alert on significant or unusual transactions
08 Apr 2010
The US Public Company Accounting Oversight Board (PCAOB) has issued a Staff Audit Practice Alert to remind auditors of public companies about their responsibilities to assess and respond to the risk of material misstatement of the financial statements due to error or fraud posed by significant unusual transactions.
Staff Audit Practice Alert No. 5 Auditor Considerations Regarding Significant Unusual Transactions compiles relevant requirements from existing PCAOB auditing standards regarding significant unusual transactions and groups them into the following categories:
- Identifying and assessing risks of material misstatement
- Responding to risks of material misstatement
- Consulting others
- Evaluating financial statement presentation and disclosure
- Communicating with audit committees
- Reviewing interim financial information
