Audit-is-cool is pleased to accumulate
and provide its readers with the news on audit and related topics:
December 2, 2015
Accounting Today
SEC
Penalizes Grant Thornton for Ignoring Red Flags in Audits
In
a statement – SEC’s Division of Enforcement Director Andrew J. Ceresney said
that “Audit firms must be held responsible when systemic failures such as
inadequate engagement procedures, staffing, or supervision cause the firms’
work to fall significantly short of expected standards, particularly when
multiple audits and engagements are involved.”
During
audits of two public traded companies under SEC enforcement actions, Grant
Thornton and two of its partners disregarded red flags and fraud risks. For
improper accounting and other violations, the firm has agreed to pay $4.5
million to settle charges. They admitted wrongdoing and agreed to forfeit
approximately $1.5 million in audit fees and interest plus pay a $3 million
penalty.
Please
follow link for details: http://www.accountingtoday.com/news/audit-accounting/sec-penalizes-grant-thornton-for-ignoring-red-flags-in-audits-76580-1.html
December 1, 2015
PwC
Our
focus on audit quality
PwC Assurance Quality Managing Partner
Michael Gallagher:
“We understand the importance of
maintaining our focus on delivering quality, being transparent about our
process, continuously investing in innovation, and further developing the
competencies that will allow us to solve important problems.”
PwC leaders are proud of the quality
of their audits and, in particular, the progress they have continued to make, such
as: 94% compliance rate of audit engagements selected for internal inspection;
99% audit professionals reported receiving consistent messages about the
importance of audit quality; and 97% audit professionals reporting that they
understand the practice’s objectives regarding audit quality.
The support on transparency, people
strategies and new leadership framework to assess PwC professionalism were also
discussed.
November 26, 2015
Accountancy Age
Has
the value of audit to investors improved post-HBOS?
After the collapse of HBOS, the Bank of
England’s 500-page report did not satisfactorily show how or why the failure
happened. But it accordingly provided some significant points regarding the
value of audit.
Excerpts from Deputy Editor Richard Crump’s
Opinion:
“The ultimate arbiter of value around audit
will be on how these challenges are articulated to the investment community. As
is so often the case - concerns get raised about management assumptions but
they never found their way through to the investment community - until a long
way down the line… Improvements have been made to how audit is undertaken, so
will the enhanced auditor reports complete the task? There is still some way to
go for audit to deliver real value to investors.”
Please follow link for details: http://www.accountancyage.com/aa/opinion/2436695/has-the-value-of-audit-to-investors-improved-post-hbos
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