Advising audit clients on the implementation of new accounting pronouncements without inappropriately stepping in the shoes of management can be difficult; the recent revenue recognition standard has heightened this risk. In addition, practitioners often struggle to find a balance between challenging management’s assumptions in the area of accounting estimates versus developing their own independent conclusions. Bob Dohrer, Chief Auditor for the AICPA, and Toni Lee-Andrews, Director – Professional Ethics, will discuss the appropriate steps to take to both avoid independence impairments and appropriately audit estimates. This discussion will include other recent ethics pronouncements where, if not appropriately implemented by firms, will also lead to independence issues.
Understand the appropriate steps to take to avoid independence impairments when performing non-attest services.
Understand fundamentals of auditing accounting estimates such as those required by FASB ASC 606 and related implications for auditor reporting.
Identify recent pronouncements where, if not appropriately implemented, could lead to independence issues.