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Lively discussions on nonattest services have been the norm since 2003, when the AICPA's Professional Ethics Executive Committee (PEEC) published Interpretation 101-3, 'Performance of Nonattest Services,' of its Code of [...]

Statement on Auditing Standards (SAS) 99, Consideration of Fraud in a Financial Statement Audit, requires the auditor to 'presume there is a risk of material misstatement due to fraud relating [...]

As a discussion leader for continuing professional education (CPE) courses for 25 years, the author has witnessed many CPAs struggle to adjust their audit approach to comply with new standards. [...]

The AICPA's 2002 release of Statement on Auditing Standards (SAS) 99, Consideration of Fraud in a Financial Statement Audit, has led auditors to adopt new, innovative approaches to analyzing accounting [...]

Consider this scenario: Capitol Motors is in its first year of operations and as of December 30 has total revenues of $5 million, projected net income of $200,000, and total [...]

Effective accounting information systems (AIS) will enhance decision making, motivate executives, and increase efficiency in the organization. The AIS used to report and control production spoilage or product defects usually will not achieve all of the three objectives which, consequently, produces conflict between the management personnel. Defective products or work and production spoilage indicates imperfections in labor, materials, or machines and work which can not meet either the satisfaction or the specifications of the customer. A quality defect-reporting system will meet the following objectives: record all defect-related costs; provide executives with enough data for decisions about the levels and reasons of the defects; motivate executives to take the responsibility and to prevent the defects; and allow for feedback for the evaluation of the department's performance and data for corrective action when needed.

Under current auditing standards, companies can become bankrupt immediately following their receipt of a clean audit opinion from their auditors. The public, however, believes that auditors should report on the likelihood of the audit client's being able to continue in business; in fact, some believe the auditors should act as an early warning system, announcing in their audits whenever they have reservations about the continuity of a client. Research into 80 companies that received audit opinions expressing doubt as to their ability to continue to operate has produced a profile of troubled companies. It is suggested that this profile could form the basis for continuity evaluations, when (and if) such evaluations become a mandatory part of the audit process.