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FAST FORWARD Building the Profession of Tomorrow
Reinforcing the Profession’s Commitment to Quality
Sue Coffey, CPA, CGMASenior Vice President – Public Practice & Global Alliances Spring Council | May 18-20, 2014
#6
Long-standing History and Commitment to Quality and Public Protection
CPA exam
Standards setting
Guidance, tools, training, development, resources
Audit Quality Centers
Quality monitoring/peer review
Ethics enforcement
Thought leadership
Emerging Issues
Complexity in business and
underlying standards
Pace of change Continued audit relevance
Peer review and inspection results
Regulators’ scrutiny
Expanding services
Near-Term and Long-Term Quality Enhancements under Consideration
2-Phased Approach to Enhance QualityNear-Term Long-Term
Changes to professional standards and related implementation guidance
Practice Monitoring of the Future
New tools, development and resources (including Future of Learning, AQC activities, and CPEA)
Amendments to the existing peer review program
Regulator Engagement
Consideration of Professional Standards and Related Implementation Guidance
Assess/modify quality control standards/guidance• Considering greater specificity, particularly for audits of
regulated industries (e.g., EBP, Gov)• Considering incorporating certain AQC membership
requirements/best practices into QC standards or guidance
Monitor new clarified SASs and assess need for change
Enhance value and relevance of auditor reporting, including going concern and other information
Development of New Tools, Training and Resources
Identifying trends through peer review findings• Develop timely tools and education to improve audit quality
Future of Learning
Developing additional tools, training and resources• Competency-based curricula and related assessments• Alerts and guides• Audit Quality Center activities• Center for Plain English Accounting (CPEA)
Near-term Changes to Peer Review under Consideration
Enhance quality of peer reviewers
Evaluate “new” industry engagements promptly
Deepen review of high-risk industries and areas of concern
Create “SWAT” team
Make peer review results more informative
Principles for Practice Monitoring of the Future
Increased public protection through enhanced audit effectiveness via:
Earlier detection of engagement deficiencies
Systems that capture and include all firms that should be subject to review
Systems that capture and include all engagements that should be reviewed
Objectives of Practice Monitoring of the Future
More real-time and continuous process to detect issues earlier
Use of technology and people
Use of data from firms’ systems
Dashboard that is useful to firms and AICPA/external monitors
Transparency and usefulness to regulators and public
Checks and balances to include all firms and all A&A engagements
Continuous analytic
evaluation
Human
review
Intervention
Periodic Inspection
Oversight
Facetsof theConcept
Next StepsDiscussion document – summer 2014• Profession’s plans and ideas• Soliciting input from members and other stakeholders
Practice monitoring of the future – fall 2014• Concept paper release• Soliciting input from members and other stakeholders
Critical partnerships• State CPA societies• Regulatory community• Members
Copyright © 2014 American Institute of CPAs. All rights reserved.
Thank You
2014 AICPA Spring Council
Scottsdale, ArizonaMay 18-20, 2014