intheblackleadership . strategy . business
WILL NEW TECHNOLOGIES CREATE OPPORTUNITIES OR
JUST CHALLENGES? HOW WILL DATA ANALYTICS CHANGE
THE AUDITOR’S ROLE? SHOULD AUDITORS BE HELD
LIABLE IF THEY MISS FRAUD? THIS ALL ADDS UP
TO INTERESTING TIMES AHEAD FOR AUDITORS.
THE FOLLOWING COLLECTION OF ARTICLES AND PODCASTS
EXAMINES THE HOT TOPICS IN AUDITING.
The ATO explains that it is using risk
profiling to target SMSF auditors for review.
CPA Australia policy adviser – audit and
assurance, Claire Grayston CPA, identifies six
red flags that could point to problems with
SMSF auditor’s independence or audit quality
and trigger an ATO review.
Should detecting fraud or other
major infractions be part of an
auditor’s professional duty of
care, or is it a step too far? Three
experts give their views.
At what point does an auditor decide
that a company is at risk of being unable
to continue in business? When does the
auditor need to highlight that risk by
issuing a “going concern” emphasis of
matter in their report?
Research funded by CPA Australia finds
that auditors are increasingly deciding
that the entities they audit may not be
able to continue operating.
Regulators continue to call for a greater level
of professional scepticism amongst auditors.
How can auditors cultivate an appropriate level
of scepticism in order to do their job properly,
but without becoming completely distrusting?
There are ways to promote professional
sceptism, such as sharing insights from fraud
and error cases, developing skills in effective
interview techniques and communication, and
developing strategies to counter clients who
try to intimidate audit staff.
In this informative
podcast, Professor Miklos
Vasarhelyi, a leading
researcher in data
analytics, tackles the
question of whether data
analytics is fundamentally
transforming the audit
– or is it just a new means
of gathering the same
evidence as in the past?
Auditing small entities brings many
unique challenges. Engagements may
combine audit, review or compilation
of financial information, with
assurance on compliance or controls
into one engagement. These “multi-
scope engagements” create added
complexity and each presents its own
challenges, which means that auditing
small entities does not necessarily equate
to being simple, straightforward or
low- risk engagements.