Business Commons^™

Summary #4: The Effects Of Internal Audit Outsourcing On Perceived External Auditor Independence, D. Jordan Lowe, Marshall A. Geiger, Kurt Pany

Accounting Faculty Publications

The accounting profession is attempting to redefine itself, in part by expanding the types of services it provides. This expansion of services has raised questions about whether CPA firms can maintain their independence and still provide an ever-increasing array of other types of services to audit clients. In this study we addressed financial statement user perceptions about CPA firms performing internal auditing outsourcing activities—an area in which CPAs are becoming increasingly involved.

The New Auditor's Report: Have The Benefits Of Wording Changes Been Acknowledged Outside The Cpa Profession?, Marshall A. Geiger

Accounting Faculty Publications

CPAs use the auditor's report to communicate their opinions of an entity's financial statements and related disclosures. Concerned parties, in turn, use the report to assess the integrity of the financial statements and the accuracy of the disclosures.

In 1988, the American Institute of CPAs auditing standards board established new wording for the standard unqualified audit report. It also revised the reporting requirements and types of audit reports allowed (for example, the subject-to report for uncertainties and except-for report for consistency departures were eliminated). The new wording appears in Statement on Auditing Standards no. 58, Reports on Audited Financial Statements …

Bankers' Reactions To The New Standard Report And Consistency Reporting Requirements, Marshall A. Geiger

Accounting Faculty Publications

The auditor's report is the primary source of information for a bank loan officer concerned with the integrity of a potential client's financial statements. Recently, the auditing standards board of the American Institute of CPAs established new wording and reporting requirements in the standard report for companies that change accounting principles -- among other changes in reporting on audited financial statements. The ASB modified the long-lived standard report wording to which the U.S. financial community had grown accustomed.

One hundred and ninety-nine randomly selected bank loan officers from across the United States participated in a mail survey designed to assess …

Sas No. 58: Did The Asb Really Listen?, Marshall A. Geiger

Accounting Faculty Publications

One thousand-plus letters are a lot of mail. That's how many comments the American Institute of CPAs auditing standards board received when it proposed 10 new standards to help close the expectations gap between what auditors perceive as their responsibility and what the public thinks. Did the ASB really listen to these comment letters before finalizing nine SASs, or did it simply solicit the comments to fulfill the standard-setting, due-process procedures mandated by the AICPA board of directors?