Audit response to significant risk identifed for audit engagement

In any audit participation – it’s mandatory to identify substantial risk that is unique to individual engagement as required by global quality of auditing. The substantial risk identified requires auditors’ special factor in designing and executing the audit processes.

For instance, for active business, the auditor can be aware that the revenue might not be recorded in proper period since there may be incentive for management to overstate the earnings. Given that the oil price will be at low end cycle, there might be danger the gas & oil audit client might understate their supply for any onerous contract.

In summary, it’s crucial to develop a robust understanding of the audit client (including: business environment, settlement package of direction , etc) to determine significant risk.

When a matter is identified as significant risk – auditors will need to design analysis response that requires special consideration – i.e. carry… Read More

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G20 finance ministers commit to digital tax policy by 2020

standfirst: 

‘They also have agreed to work on mechanisms so that companies would see their gains taxed at a minimum levels.

Pat Sweet
Reporter, Accountancy Daily, published by Croner-i Ltd
Even the G20 finance ministers have signalled their support to the OECD’s’two pillars’ approach to handling International taxation issues, and pledged to agree to the introduction of a digital tax by 2020

The comments came against a backdrop where individual nations — especially the UK and France — have signalled their impatience with the time it’s taking to agree a global approach to digital services taxation, also have indicated they intend to proceed with a new tax regime within their respective jurisdictions.
‘In January, the 129 members of this Inclusive Framework agreed a policy note that identified the shapes of a solution based on two columns — one addressing the reallocation of taxing rights (Pillar 1) and the other based around a minimum taxation to address the res… Read More

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What Are the Chances of a Significant Sanction or Fine for KPMG?

Shade Oprah GIF out of Shade GIFs

To ease its accounting of the Department’s daily activities, during fiscal year (FY) 2018 that the DOJ lasted the multi-year implementation of its Unified Financial Management System (UFMS). Because of competing priorities faced with DOJ personnel in encouraging the conversion of nine component associations within the Offices, Boards, and Divisions (OBDs) reporting element into UFMS and preparation to the conversion of the remaining OBD component associations in FYs 2019 and 2020, we noted the emphasis placed on that the Department’s financial statement preparation and review processes hadn’t achieved the full level of rigor that is essential to prepare timely and accurate financial statements in accordance with commonly accepted accounting principles, along with OMB Circular No. During our FY 2018 audit, the Department discovered or we brought to the attention of this Department the following errors, where the underlying causes were similar and pe… Read More

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3 Steps I Took to Reach Financial Independence by Age 32

The news feeds seem to be full of story after story of people living at a really young age and how they did it. Most of the tales are very similar and target always appears to function as retirement and world travel. But what about the rest of those who want to keep on making a difference in the world and refuse to bow to hedonism? Most of us, I believe, are miserable doing nothing for long periods of time.
Source… Read More

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