December 11, 2018

expectations gap

This ‘Fighting Fraud’ Video from the CAQ Isn’t Going to Help That Expectations Gap Problem Auditors Love to Complain About

Most people like to learn in some sort of visual fashion. Reading? BORING. Lectures? AWFUL. There needs to be action, bright colors, and a damsel in distress — bonus points if there's a scene of frontal nudity — to get people to pay attention for longer than five minutes.  Investors in public companies are no […]

The Dixon, Illinois Fraud Is the Latest Example of Why Reasonable Assurance Is Bullshit

As you know, the former CFO of DIxon, Illinois, Rita Crundwell, has been accused of misappropriating $30,236,503 and 51¢ from Ronald Reagan's boyhood home. It's a haul of Sue Sachdeva proportions, although it appears that obsessive shopping wasn't so much the motive as it was a My Little Pony fascination for a grown woman. ANYWAY, […]

Center for Audit Quality Concerned That No One, Outside of a Few Auditors, Knows What Auditors Actually Do

The CAQ’s continuing dialogue with individual investors indicates that many in the marketplace do not fully understand the scope of the audit process and the responsibilities placed on public company auditors. The In-Depth Guide to Public Company Auditing will help to bridge that information gap. The new Guide describes how a public company audit firm decides to accept a new audit engagement, how it assesses the risk that the financial statements contain material misstatements as part of determining the audit’s scope, and then how the auditors perform and report their findings – all in plain English. [Cindy Fornelli/CAQ, Guide]