LATEST UPDATE PCAOB Publishes New Resource to Help Smaller Audit Firms Address Challenges of Auditing Accounting Estimates A new PCAOB publication, Audit Focus: Auditing Accounting Estimates, available on: https://pcaobus.org/resources/staff-publications/audit-focus--auditing-accounting-estimates, provides auditors with reminders and good practices regarding accounting estimates, an especially challenging aspect of financial statements. Accounting estimates are pervasive in financial statements, often substantially affecting a company's financial position and results of operations. They generally involve subjective assumptions and measurement uncertainty, making them susceptible to management bias. Consequently, accounting estimates are often some of the areas of greatest risk in an audit. The PCAOB’s [...]

LATEST UPDATE FRC Publishes Further Supporting Materials as Part of SME Audit Campaign As part of its campaign to support small and medium-sized enterprises (SMEs) access audit services, the Financial Reporting Council (FRC) has released further supporting material to help SMEs to confidently and effectively engage with the annual audit process. The summary document is available on: https://media.frc.org.uk/documents/What_is_an_audit.pdf and provides stakeholders with insights into the key considerations and principles that guide a successful audit. It also sets out the key public interest benefits that audit provides for shareholders and potential investors, and the employees, suppliers and other [...]