Question

Go to the AICPA Website to review the Clarified Auditing Standards–Learning and Implementation Plan. Next, choose one (1) of the eight (8) steps in the Clarified Auditing Standards–Learning and Implementation Plan. Based on the step you have chosen, analyze support for the action plan proposed, and make at least two (2) recommendations that would improve support of the action plan.

Answer 1

Introduction to claified Auditing standards:

The ASB ( Auditing standards board) had redrafted all of the present auditing sections in codification of statements on auditing standards. These sections are easier to read , interpret and aplly them in fields of work. Therefore, it is the duty or responsibility of auditors to be redy for the transition to clarified auditing standards which comes into effect from calender year 2012. The AICPA developed an Learning and Implementation plan to preprae for Transition.

Learning and Implementation Plan: There are 8 steps for learning and implementation. They are:

1. Assign the owner to become a expert and take lead by understanding and implemeting the clarified standards.

2. Familiarise with clarified standards.

3. Take a deep look into subtantive changes and assess the impact on your firm.

4. Consider potential impacts to the audits performed by your firm.

5. Training to the professional staff and partners of the firm.

6. Determine how these standards impact each audit engagement and prepare for potential client concerns.

7. Ensure all the communication letters are updated to incorpotate required new language

8. Communication with the clients of firm.

Now I choose the 5^th step out of 8 steps in clarified auditing standards - Learning and Implementation Plan.

The 5^th step is Facilitating training for your staff and the group of partners.

Support for the proposed action plan:

1. We can use the staff training powerpoint template to suit our firm requiirements from the PCPS clarified auditing standards toolkit to educate the professional staff and partner group.

2. Firm can provide Snapshot Overview provided by PCPS clarified auditing standards toolkit as a handout to the staff while training.

3. On Demand course on clarity project also acts as great support to the staff for understanding the clarified auditing standards.

4. Various publications by AICPA and video clips available to auditors act a support to the professional staff and partner group.

Note: PCPS: Private Companies Practice section ; AICPA : American Institute of Certified public Accountants.

Recommendations to improve support of action plan:

1. The professional staff should equip themselves with the basic understanding of clarifed auditing standards before participating in training sessions which can benefit the firm as a whole in an effective manner.

2. The Human resource department must ensure that every professional is making himself available either in person or online for the training sessions.

These would improve the support of the action plan and thus resulting into a smooth transition to Clarified Auditing Standards rather than a cumbersome one.

PS: Please use "Thumps Up" if you are contented with my solution and presentation.