The Public Company Accounting Oversight Board (PCAOB) has adopted a suite of eight auditing standards related risk assessments, the American Institute of CPAs (AICPA) reports.
The standards, if approved by the Securities and Exchange Commission, will enhance the effectiveness of the auditor’s assessment of and response to the risks of material misstatement in financial statements.
These standards address audit procedures from the planning stages through evaluation.
Why This Matters to Your Business
This is interesting to business owners for a few reasons:
- More effective auditing procedures will make it easier for your auditors to spot company fraud and employee theft, meaning you’ll be better protected from these crimes
- These streamlined auditing procedures will make the independent auditing process easier.
- It’s more important than ever to have a QuickBooks certified bookkeeper who can manage your books based on GAAP standards
It’s important to note that, by “audit,” the AICPA is referring to the independent review of your company’s books—not an IRS audit. These independent audits help you by making sure your company’s books are in order, accurate and easy to understand.
If an auditor discovers a problem or misstatement in your books, it may be time to review your accounting processes and procedures and perhaps look to an outside firm to manage your books. But why wait that long? Virtual QuickBooks certified bookkeepers from AccountingDepartment.com can help you get your books in order long before problems are discovered. Contact us today.
