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Jeffrey Johanns

@JohannsAudit

Associate Professor of Instruction, McCombs School of Business - The University of Texas at Austin. Former Big 4 Audit Partner

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Last week the #PCAOB issued a major new standard - Firm and Engagement Metrics. It will require public disclosure of indicators of #audit quality at both the firm and engagement level. Here is a summary of the final metrics updated from the original proposal.…

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Call me skeptical. I don't think @EY_US would have made statements about not accepting #audit committee representations without a sound basis. No changes to management or the Board required for @BDO_USA to accept the client? OK...

Super Micro’s new auditor: a step toward compliance, but what's next? My take on what the compliance milestones may look like $SMCI: open.substack.com/pub/deepquarry…



First, high-level take on the #PCAOB actions today on disclosing #audit metrics: 1. Requirements to disclose individual engagement metrics passed. Will be costly and incremental value to investors minimal, due to lack of context. Audit committees have all the information they…

Today, the PCAOB adopted two sets of separate but complementary amendments to increase audit firm transparency, bring consistency to the disclosure and calculation of audit firm and engagement metrics, and help the PCAOB conduct its oversight to protect investors.…

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#NOCLAR, as proposed, was always a fatally flawed standard. Time to start over, with limited objectives. #audit PCAOB calls off NOCLAR standard for this year accountingtoday.com/news/pcaob-cal…


Still not #NOCLAR, but very impactful standards, nonetheless. It will be interesting to see if any modifications to proposed metrics are included - such as partner compensation, which was poorly conceived and impractical. #PCAOB #audit

At a Nov. 21 open meeting, the PCAOB will consider adopting requirements related to (1) firm and engagement metrics and (2) the PCAOB’s firm reporting framework. The Board will also consider its 2025 budget. pcaobus.org/news-events/ne…

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This publication from @PCAOB_News is quite informative. It helpfully links the #PCAOB #audit requirements relating to illegal acts to Section 10A of the Exchange Act. It is time to scrap the #NOCLAR proposal and build on this.

A new staff Spotlight publication focuses auditors on relevant considerations when performing procedures to detect, evaluate, and make communications about illegal acts by a company under audit. pcaobus.org/documents/ille…

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Well, it isn't #NOCLAR.

At a Nov. 14 open meeting, the PCAOB will consider adopting a rule amendment enabling the Board to address situations where a registered firm has ceased to exist, is nonoperational, or no longer wishes to remain registered. pcaobus.org/news-events/ne…

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Wait, I thought that we had to change the whole system because of the "pipeline problem".... Accounting master's hit five-year peak in application growth accountingtoday.com/news/u-s-accou…


It is time to start discussing the impact of the election on the #PCAOB standard setting agenda. Will #NOCLAR get issued in spite of widespread dissent or placed on the backburner? #audit #SEC

The PCAOB has updated its standard-setting and rulemaking agendas following significant modernization progress in 2024. pcaobus.org/news-events/ne…

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KPMG is laying off hundreds of employees in its U.S. auditing business as it works to make up for lower levels of voluntary turnover wsj.com/articles/kpmg-… via @WSJ


A balanced discussion about #audit quality in this article. My view on what's most important to investors is included. #PCAOB Tensions erupt over US audit quality ft.com/content/d3ffb2… via @ft


The Non-Compliance with Laws and Regulations standard (#NOCLAR) is still on the agenda to be issued in 2024. Will there be any substantive changes to the initial proposal? #audit

The PCAOB has updated its standard-setting and rulemaking agendas following significant modernization progress in 2024. pcaobus.org/news-events/ne…

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An interesting, and humorous saga. Day 1 stuff in any introductory #auditing class. I should start one for judges and senators. An appeals court on Thursday ruled that investors’ claims against BDO could proceed wsj.com/finance/regula… via @WSJ


Big 4 #auditor resignations before completing an audit are uncommon, citing inability to rely on management representations, very uncommon; but, citing inability to rely on audit committee representations - I had to read it three times...

Ernst & Young resigned as auditor to Super Micro Computer citing concerns about the company’s governance and transparency. Get more on The Bloomberg Intelligence Podcast On Apple: trib.al/w8AMMkC On Spotify: trib.al/WSgQ2IJ Anywhere: trib.al/kd0xgJv



@cbriancpa⁩ Marianne made the London broil chili tonight from your recipe. Very tasty! Thanks again for the recipe.

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It was a very scary pre-#halloween dinner party at our house tonight!

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These toolkit resources seem helpful... #audit #PCAOB

The PCAOB has posted three initial resources related to the implementation of the PCAOB’s new quality control standard: a practice aid, comparison document, and webinar. pcaobus.org/oversight/stan…

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Termination does seem excessive, but the Big 4 firms are under intense regulatory pressure on training (and the fines, including from state boards, are huge). @EYnews probably believes they had little choice. #audit EY fires staff who took multiple online training courses at…


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