Audit & Assurance
Audit & Data Analytics Sub-Group (ADA)
- Audit & Data Analytics (ADA) Directory
- Audit & Data Analytics (ADA) Interactive Forum on Ryver (By invite only. Email email@example.com if you'd like to join.)
Meet the Co-chairs - TIAG
Cornick, Garber & Sandler, LLP
Mercer & Hole
Mercer & Hole's audit and business advisory partner Andy Turner gives his view on how technology is advancing the process of audit and what we might expect to see in the audit of tomorrow.
Where are we now?
Technology can improve both audit quality and drive efficiencies into the audit process and there is a real need to ensure this is incorporated into the audit process – if a firm does not they may not be giving their clients the best possible service. The audit of the future definitely needs to incorporate technology in what is fundamentally a three step process:
The AICPA’s Auditing Standards Board (ASB) is taking steps to enhance the consistency of financial reporting between public and private companies. A new omnibus auditing standard will cover standards on related parties, communications with audit committees, and consideration of fraud in a financial statement audit.
In November 2017, the American Institute of Certified Public Accountants (AICPA) published an updated audit and accounting guide on analytical procedures. The use of audit analytics can help during the planning and review stages of the audit. But analytics can have an even bigger impact when these procedures are used to supplement substantive testing during fieldwork. Here’s how your auditor uses analytical procedures to make your audit more efficient and effective — and why it’s critical for you to tell your auditor about major changes during the accounting period.
Contact: Peggy McCaffrey
In a no-action letter issued by the Securities and Exchange Commission (SEC) Division of Investment Management to Fidelity Management and Research Company in June 2016, the SEC provided temporary relief in connection with audit firm independence and Regulation S-X Rule 2-01 (c)(1)(ii)(A), or, the “Loan Rule.”
Author: Chris Valponi, CPA
For many companies, keeping close tabs on revenue, expenses, and profit is the number one priority. However, companies that carry inventory may not realize its direct effect on profitability. This effect is known as shrinkage. Shrinkage is the excess amount of inventory (in accounting records) that no longer exists in the actual inventory. In other words, it is a loss of inventory.