Audit News Briefing: 29 October 2015

Audit-is-cool is pleased to accumulate and provide its readers with the news on audit and related topics:

October 28, 2015

Accounting Today

U.S.: AICPA Releases New Auditing Standard and Interpretation on Sustainability Financial Statements

The subject interpretation is concerning the sustainability financial statements used by the government for long-term projections of social insurance programs. In the interpretation - an auditor may report on the basic financial statements, which include the statements of social insurance, changes in social insurance amounts, and long-term fiscal projections, in accordance with Generally Accepted Auditing Standards. The interpretation also provides an illustrative auditor’s report containing an unmodified opinion on the U.S. government-wide financial statements.

Please follow link for details: http://www.accountingtoday.com/news/audit-accounting/aicpa-auditing-standard-interpretation-sustainability-financial-statements-76230-1.html

October 26, 2015

Business Insider

Marvell Technology's auditor resigned and now the stock is crashing

On October 20, PricewaterhouseCoopers (PwC) resigned as auditor of a leading fabless semiconductor company – Marvell Technology. The company audit committee neither made any request, recommendation, nor approval of said resignation.

PwC advised Marvell that in 2016 it will need to expand the scope of its audit in four areas. (1) Entity level controls (2) Process and controls over establishment of significant and judgmental reserves (3) Process and controls over identification, communication and approval of related party transactions (4) The adequacy of financial reporting resources.

Please follow link for details: http://www.businessinsider.com/marvell-technology-auditor-resigns-2015-10

October 23, 2015

Accountancy Age

PwC wrestles Virgin Money audit from KPMG

Global financial services brand, Virgin Money, released an audit committee statement thru chairman Norman McLuskie: "KPMG has been  auditor since 2004 and we would like to thank them for their significant contribution as auditors and for their consistently high standards of professionalism in executing this role. We have undertaken a very thorough, open and transparent tender process, a description of which will be included in the 2015 Annual Report and Accounts." This is in view of their intention to appoint PricewaterhouseCoopers (PwC) effective 1 January 2016, subject to shareholder approval at its 2016 Annual General Meeting.

Please follow link for details: http://www.accountancyage.com/aa/news/2431800/pwc-wrestles-virgin-money-audit-from-kpmg