By Tom Parry, Navolio & Tallman LLP
The AICPA Auditing Standards Board (ASB) has issued a Statement on Auditing Standards (SAS) No. 138, Amendments to the Description of the Concept of Materiality. The ASB’s description of the concept of materiality has been consistent with the definition used by the International Accounting Standards Board (IASB) and the International Auditing and Assurance Standards Board (IAASB). Following the decision by the Financial Accounting Standards Board (FASB) in August 2018 to return to its original definition of materiality, which was in effect from 1980 until 2010, this amendment aligns the definition with the description of materiality used by the US judicial system, the Public Company Accounting Oversight Board, the US Securities and Exchange Commission, and the FASB.
Continue Reading
By Douglas Nix, Stillwater Capital Corporation
In today’s M&A environment, an EBITDA multiple is by far the most common methodology used to discuss and assess the value of a privately owned business. It is used because of its simplicity and ease of calculation.
Continue Reading
By Aaron Caskey and Jon Connor, Dressman Benzinger LaVelle psc
LIBOR (London Interbank Offered Rate) is an interest rate index setting forth the rate at which major financial institutions will lend to each other. The rate is calculated as an average of the estimates from various leading banks. But LIBOR is not just for investors on Wall Street.
Continue Reading
By Andrea van der Giezen, JAN© Auditors & Tax Advisers B.V.
The International Forum of Independent Audit Regulators (IFIAR; the international alliance of independent supervisors for the auditing branch) published a report about audit quality last May.
Continue Reading
By Boris Michels, Andrew Jones and Prof Dr Michel De Wolf, GGI ARC Practice Group
The International Auditing and Assurance Standards Board (IAASB) seeks to further understand the challenges of using ISAs in audits of less complex entities – and views about possible actions to address these challenges. It recognises the global call for action to address issues of complexity, length, understandability, scalability, and proportionality related to using the International Standards on Auditing. Continuing the debate on these strategic issues, the IAASB published a Discussion Paper in order to get views of various stakeholders on how to support auditors working in this increasingly evolving environment.
Continue Reading
By Prof Dr Michel De Wolf, DGST Réviseurs d’entreprises
As you may know, IOSCO and its worldwide “monitoring group” overseeing the world audit and ethical standard setting process, are focusing on audit standards for public-interest entities, with no interest for “SMEs”. This is, of course, of special concern for all non-Big-Four audit practices. Meanwhile, IAASB is launching a project around the question of the scalability of ISAs, which could lead to an “ISA for SME”.
Continue Reading
By Jeffrey A. Ford, Grossman Yanak & Ford LLP
Much confusion exists regarding the capitalisation of software implementation costs, whether developed for internal use, purchased, licensed or incurred in a cloud computing arrangement. Examples of software for internal use include ERP, CRM and many other systems. This article does not apply to software for resale or for use in R&D.
Continue Reading
By Tom Parry, Navolio & Tallman LLP
The Risk Assessment Standards were issued in 2006. However, based on recent peer review data, it appears that many auditors continue to struggle with implementation.
Continue Reading
By Jeff Bathurst, SC&H Group
Today, technology is an element of nearly every business, which means every business on earth needs a practical cybersecurity plan. If you collect confidential data or utilise cloud technology, that information is potentially vulnerable. But fear isn’t the answer – preparation is.
Continue Reading
By Anders Hübertz Mortensen and Mads Anker Jensen, Dansk Revision Randers
During the autumn of 2018, one of our clients asked us if we could facilitate an audit tender for them. Their current solution in Germany and Switzerland was, for a number of reasons, unsatisfactory, due mainly to the fact they did not feel anyone had taken the responsibility as group auditor. This made the yearend process slow and frustrating. For historical issues, our firm has a strong position in the group. They still wanted our company, Dansk Revision Randers (Denmark), to be the auditor for the Danish entity but wanted a change for the rest.
Continue Reading
