PCAOB Publishes Aids for Smaller Firms
Irish auditors may find some publications of interest on the US Public Company Oversight Board website. They have a section of the website that is focused on supporting smaller audit firms to enhance audit quality which may be found here.
Thera is a series of Staff Publications (including videos) for smaller audit firms called ‘Audit Focus’. Although some of these may have US applicability only, others will be of more general interest to auditors.
For example, there is a January 2025 publication on the audit of Journal Entries arising from staff observations which identify a large number of deficiencies related to the examination of journal entries and other adjustments for evidence of possible material misstatement due to fraud.
Audit Focus highlights key reminders for auditors about testing of journal entries including:
- Obtaining an understanding of the financial reporting process and controls over journal entries and other adjustments.
- Identifying and selecting journal entries and other adjustments for testing to address the potential for material misstatement due to fraud.
- Testing the completeness of the population of journal entries.
- Limiting the testing of Journal entries to meet the fraud criteria set at the planning stage of the assignment.
- Considering the fraud risk potential of manual versus automated journal entries.
- Considering an entity’s controls over journal entries excluding the effectiveness of an entities controls over the general entry process.
- The characteristics of fraudulent entries or adjustments.
- The nature and complexity of the accounts.
- Journal entries or other adjustments processed outside the normal course of business.
For more on engagement and representation letter templates and a variety of CPD webinars on money laundering and other accounting/audit related topics, please go to our website for:
- Our latest CPD Webinar on The Main Changes in Irish GAAP (recorded July 2024)
- Anti-Money Laundering Policies Controls and Procedures Manual (March 2022) — View the table of contents
- AML Webinar (December 2023) available here, which accompanies the AML Manual. It explains the latest legal AML reporting position for accountancy firms and includes a quiz. Upon completion you receive a CPD certificate for attendance in your inbox.
- Letters of engagement and similar templates—Please visit our website here where immediate downloads are available in Word format. A bulk discount is available for orders of five or more items bought together.
ISQM TOOLKIT, or if you prefer to chat through the different audit risks and potential appropriate responses presented by this new standard. We typically tailor ISQM training and brainstorming sessions to suit your firm’s unique requirements. Please contact John McCarthy FCA by email at john@jmcc.ie.
