The PCAOB has released a Staff Inspection Brief that previews the agency’s inspection findings on audit deficiencies for 2015. While the agency found that the overall number of audit deficiencies decreased compared to 2014, preliminary results indicate an increase in the number of audit deficiencies regarding auditors’ testing of fair value measurements associated with business combinations. In addition, there were frequent deficiencies in evaluating impairment analyses for goodwill and other long-lived assets. Auditing internal control over financial reporting and assessing and responding to risks of material misstatement were also areas where the PCAOB found frequent audit deficiencies.
Extra: George Wilfert of the PCAOB will appear at the NYSSCPA FAE Business Valuation Conference in New York City May 16. He will discuss fair value reporting for GAAP. It’s uncommon for representatives of the PCAOB to speak at events such as this, so this is notable. For details on the event, click here.
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