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Flip the switch on non-conformity with 5 free audit quality resources

IStock_85468875_XXXLARGEYou strive to perform top-notch audits of your clients’ financial statements. You research the company and their industry, meet with the client, gather necessary information and develop and execute a plan. Having resources on hand can streamline the process.

Five years ago, the AICPA formed its Enhancing Audit Quality (EAQ) initiative and changed how we develop resources to help auditors. The EAQ team, working with the Audit and Attest Standards, Peer Review, Engagement and Learning Innovation, Center for Plain English Accounting, and Assurance and Advisory Innovation teams, analyzes data from peer reviews and other sources, identifies where noncompliance with professional standards occurs and develops resources to help firms in those areas.  So far, we’ve focused on: risk assessment, internal control, audit documentation, employee benefit plan audits, peer review, quality control, single audits, SOC engagements and auditing accounting estimates.

To celebrate the fifth anniversary of the EAQ program, we’ve compiled five free resources you can use to improve the quality of your audits.

  1. Audit risk assessment tool — Risk assessment is a core component of every audit. However, a recent survey of peer reviewers found over half of 400 audits they reviewed were non-conforming because of non-compliance with the risk assessment standards (AU-C Sections 315 and 330). This comprehensive template will help you identify, assess and document your planned response to risks of material misstatement and make your audit more effective and more efficient. It is designed to be used alongside your firm’s existing planning programs.
  2. Risk assessment staff training — Educate your firm’s professionals on proper risk assessment and response as well as common misconceptions to avoid. Use this PowerPoint presentation with speaker notes and this staff training case study.
  3. Internal control over financial reporting tool — A recent Peer Review Program survey found over 40% of audits didn’t comply with AU-C Section 315 and/or AU-C Section 330 because auditors didn’t properly address their clients’ controls. This tool helps auditors map out controls relevant to an audit and the associated risks.
  4. Internal inspection aids — We’ve developed internal inspection aids focused on risk assessment, documentation and internal control. These tools will help you identify non-compliance during your firm’s internal inspection. They also provide guidance on how those findings should be addressed.
  5. Dual purpose working paper for single audits — Members performing single audits will want to check out this working paper. It’s intended to support compliance with AU-C section 230 by illustrating auditor documentation for a dual-purpose test of compliance and internal control over compliance for several compliance requirements.

Audit quality is a continued area of emphasis for the profession. Use our free resources throughout the audit process. We’re sure you’ll find them valuable.

Sue Coffey, CPA, CGMA, Executive Vice President - Public Practice, Association of International Certified Professional Accountants

Carl Mayes, CPA, Associate Director – CPA Quality & Evolution, Association of International Certified Professional Accountants

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