SEC backs tougher rules for audits involving multiple firms

CFO Dive

SEC Chair Gary Gensler hailed efforts to avert significant errors in audits by multiple firms, including mistakes in the calculation of revenue and measurement of fair value

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U.S. and China Reach Agreement on Chinese Company Audits

CFO News Room

accounting regulators to inspect China-based audits , laying the groundwork for a monthslong process that could prevent numerous Chinese companies from being booted off American stock exchanges. The deal, which was negotiated over many months, comes after a decadelong standoff between regulators in the two countries over the audit working papers of New York-listed Chinese companies. Washington and Beijing reached an agreement for U.S.

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Cybersecurity increasingly on audit committee agendas

CFO Dive

To the extent CFOs support the committees, they could be called on to help find experts to join, or present to, members who are tasked with preventing a damaging breach

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China’s Ailing Developers Delay Results as Audits Drag

CFO News Room

said they couldn’t publish audited annual results by Hong Kong’s March 31 deadline, with some blaming pandemic-related problems as one reason for the delay. Others have recently parted company with the accountancy firms that previously audited their books.

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Talent shortage turns audits into tactical issue

CFO Dive

Delays mean companies can face hurdles raising capital, securing financing or making financials available to buyers interested in an acquisition

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Nonprofit Audit Checklist (+ Free PDF Download)

The Charity CFO

Many nonprofit organizations both large and small need to undergo a financial statement audit every year. Preparing for a nonprofit audit can be overwhelming and anxiety-filled, especially if it’s your first audit or you don’t have a strong and experienced financial team.

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Assessing Inherent Risk During an Audit

CFO News Room

They do this through routine audits , which are reviews that may involve the financial examinations of corporate financial statements, as well as compliance issues and internal controls involving a company’s financial reporting. Audits are conducted by internal and external auditors.

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Lack of Access Could Hinder Audits of Companies With Ties to Russia

CFO News Room

Also, due to government sanctions accounting firms will likely have less access to auditors in Russia than they previously did, audit experts say. The Public Company Accounting Oversight Board, which regulates audits of companies listed on U.S. audit watchdog said. Audit Risks.

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The Truth About Nonprofit Audits

The Charity CFO

In this episode, Tosha will walk you through the most common misconceptions about nonprofit audits to let you know exactly what you can expect (and NOT expect) from a nonprofit audit before you commit. Audits scare the daylights out of nonprofit founders.

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PCAOB finds audit flaws on fraud risk, SPACs

CFO Dive

During the coming inspection period, the PCAOB’s so-called Target Team will focus on “risks related to climate change” that influence companies’ financial statements

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Accounting Firm EY Considers Split of Audit, Advisory Businesses

CFO News Room

Big Four accounting firm Ernst & Young is considering a world-wide split of its audit and advisory businesses amid regulatory scrutiny of potential conflicts of interest in the profession, according to people familiar with the matter. billion came from audit work.

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When Does Your Nonprofit Need an Audit?

The Charity CFO

Contrary to what many people envision, a nonprofit audit doesn’t usually start with a letter from the IRS. Instead, an independent nonprofit audit is something you choose to build trust in your nonprofit organization. What is a nonprofit financial audit? .

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Global Auditing Firms Struggle to Leave Russia

CFO News Room

The Big Four will likely use these new firms for the now-complicated task of auditing the Russian operations of multinational s, according to people familiar with the matter. Removing that shared support entirely could make it difficult for the Russian firms to offer their existing audit and other services, people close to the Big Four firms said. Big consulting firms such as. Accenture PLC. ACN -3.57%. and McKinsey & Co. have quit or stopped all client work.

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Deloitte Explores Splitting Auditing, Consulting Arms, Following Ernst & Young

CFO News Room

Deloitte is exploring a plan to split its global audit and consulting practices, following an effort by fellow Big Four accounting firm Ernst & Young to potentially spin off its consulting arm , according to people familiar with the matter. The moves would mark the biggest shake-up in the accounting industry in decades, handing windfalls to tens of thousands of the firms’ partners and creating two new consulting giants and two stripped-down auditing firms.

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BREAKING: SEC proposes sweeping new PF audit, fees rules

Private Funds CFO

The entire industry is caught up in 'sea change' proposal. Compliance News & Analysis featured SEC

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PCAOB, SEC double down on full access to audits in China

CFO Dive

The Public Company Accounting Oversight Board (PCAOB) doesn’t have the authority to remove foreign companies from U.S. exchanges but a 2020 law gives the Securities and Exchange Commission authority to do that if the PCAOB isn’t getting cooperation

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IRS Corporate Audits Drop 71 Pct, Individual Audits Fall 65 Pct

PYMNTS

Audits of partnership tax returns dropped by 79 percent, while employment tax return examinations fell 42 percent over the same timeframes. Treasury Inspector General for Tax Administration raised questions over the business auditing performance of the agency.

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The top challenges for internal audit in 2022

Future CFO

The top challenge for internal audit leaders this year is how they can attract talent with nontraditional skills, said Gartner recently. 57% of chief audit executives said that attracting talent with nontraditional skills was an important or extremely important issue for them in 2022.

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Hybrid auditing: How audit leaders can transform processes to tackle challenges

Future CFO

Audit functions that fail to adapt well to hybrid auditing risk a loss of effectiveness and influence at a time when real-time assurance has never been more vital to the wider organisation, said Gartner recently. Data analytics has also enabled better remote and continuous audits. .

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EY Says Wirecard Gave False Statements During 2019 Audit

PYMNTS

The company was involved in deliberate deceit and had given false statements on escrow while EY was carrying out the 2019 audit of the company, which EY took to the relevant authorities, Reuters reported.

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German Central Bank Calls For Tighter Auditing Post-Wirecard ‘Scandal’

PYMNTS

In the latest development, Bundesbank President Jens Weidmann said in an interview published by newspapers that are part of the Funke media organization that auditing should be enhanced, according to a translation to English from German by Reuters.

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Wirecard Defends Auditing Practices

PYMNTS

Wirecard has denied claims levied by the Financial Times that its subsidiaries were not audited, according to a report by Reuters. The FT , using a whistleblower as a source, said that Wirecard’s accounts in Card Systems Middle East in Dubai were not audited in 2016 and 2017. All subsidiaries of Wirecard, including Card Systems Middle East, are subject to regular audit procedures, including but not limited to quarterly and annual audits,” the company said in response to the claims.

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Audit and Technology

Future CFO

This report provides an overview of some of the various technologies that currently affect or are likely to affect the audit profession in the near future and what this means for auditors as people. Download The post Audit and Technology appeared first on FutureCFO.

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Mnuchin Now Says All PPP Loan Recipients Will Face Audits

PYMNTS

Businesses that borrow money through the federal Paycheck Protection Program (PPP) can expect to be audited before the loans are forgiven, Treasury Secretary Steven Mnuchin told The Wall Street Journal. But Tuesday night, Mnuchin told the paper all loans will be audited.

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Wirecard Says Audit Finds No Account Manipulation

PYMNTS

German payments company Wirecard said that an auditing firm it hired found no evidence of account manipulation, according to a report by Reuters. . Security & Fraud Account Manipulation Audit Firm india Klarna KPMG News payments probe Singapore What's Hot Wirecard

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Will new IRS funding increase small business audits?

CFO Share

Should we expect more audits and fines? This austerity, compounded with complex Covid tax relief measures, means the IRS is 6+ months behind in processing tax returns, audits, and even opening the mail. Enforcement activity, including audits, has focused almost exclusively on high-income individuals and corporations, not small businesses. How do I avoid an IRS audit? Audits, fines, and other IRS disputes are a major distraction from routine business.

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How Continuous Auditing Drives Corporate Spend Optimization

PYMNTS

Usually, the auditing workflow involves looking at expense reports filed by employees, with a focus on identifying potentially erroneous or even fraudulent transactions. But the true value in data analytics technology is in the ability to continuously audit transactions as they flow in.

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Wirecard CEO Won’t Resign Despite Questions Raised By Audit

PYMNTS

Despite an audit that raised questions about operations at Wirecard, a publicly traded financial services provider based in Munich, its CEO has ignored calls to resign. The survey by KPMG, a global auditing firm, criticized the company’s lack of transparency and cooperation.

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Internal audit at risk of being overstretched in 2021

Future CFO

The internal audit function faced both declining budgets and a significantly expanded workload in 2020, according to Gartner survey of 299 internal audit organisations in 2020. The post Internal audit at risk of being overstretched in 2021 appeared first on FutureCFO.

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 AppZen On The State Of Spend Auditing

PYMNTS

Firms auditing expenses through manual processes and outdated technologies risk missing the chance to flag erroneous or fraudulent submissions from vendors and employees. Deploying technology — especially artificial intelligence (AI) — can streamline the auditing process and boost cost savings significantly. As AppZe n noted in a recent report titled “The State of AI in Business Spend,” companies that do not use AI audit only 10 percent of their spending.

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Mnuchin: SBA PPP Loans Over $2M Face Audits Before Forgiveness

PYMNTS

Any small business getting an emergency coronavirus loan from the Small Business Administration (SBA) greater than $2 million will be subject to an audit, Treasury Secretary Steven Mnuchin said. Conducting audits of so many businesses could prove to be a near-impossible undertaking.

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Big Four Accountancies Fail UK Audit Test

PYMNTS

s so-called Big Four accountancy firms — KPMG, PwC, EY and Deloitte — have reportedly failed to reach audit quality standards set by the Financial Reporting Council , Reuters reported this week. It marks the second year in a row that the Big Four failed the auditing test, while second-tier auditors Grant Thornton, BDO and Mazars also all failed to hit the FRC’s target that 90 percent of audits require only limited improvements. Only 75 percent of the audits of the U.K.’s

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UK Moves To Split Audit And Consulting Profits At Big Four

PYMNTS

The Big Four accounting firms will have to put their United Kingdom auditing and consulting practices in separate business units by 2024, but may keep them within the same parent companies, under regulations announced today by the Financial Reporting Council.

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Audit Standards On Hot Seat In Wake Of Wirecard Scandal

PYMNTS

The former chair of the London Stock Exchange is calling for a thorough overhaul of audit standards in the wake of the $2.1 Security & Fraud audit standards auditors B2B B2B Payments Ernst & Young EU EY fraud News payments scandal What's Hot In B2B Wirecard

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PwC: Next Auditing Giant To Overhaul Business

PYMNTS

auditing giant to overhaul operations amid growing regulatory scrutiny on the industry. PwC is reportedly planning to ramp up its auditing operations by hiring 500 more auditors across the U.K., The company will also deploy a digital audit team, strengthen training operations and review existing clients. auditing operations via the creation of a new executive committee to manage performance and controls. Head of Audit Hermione Hudson in a statement.

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