Taking the Risk Out of Risk Assessment

“Risk assessment is at the core of every audit. The goals of identifying, assessing, and responding to risks of material misstatement (“risks”) drive every audit procedure, from gaining an understanding of the entity and its internal control to vouching transactions back to vendor invoices. However, more than a decade after the 2006 Risk Assessment Standards

Audit Independence & Consulting: Where is the Line?

“For public accounting firms, there is a clear independence line between auditing the financial statements of a business and also handling the accounting. However, as the variety of consulting services offered by CPA firms and the associated fees grow, the waters of independence can become muddy.” (Bill Thompson, 2018) Read the article linked below from

Shocking Report on Audit of US Military… Reported by Reuters

According to an article from Reuters.com, an auditor has found that the U.S. Army fudged its accounts by trillions of dollars.  “The United States Army’s finances are so jumbled it had to make trillions of dollars of improper accounting adjustments to create an illusion that its books are balanced.”  Follow the link below to read

Pentagon Fixing Problems that let Fake Federal Agency get $1.2 Million in Military Hardware

Undercover GAO agents were able to purchase $1.2 million in military equipment by posing as a fake federal law enforcement agency. Although the Pentagon is now in the process of fixing these security issues brought to light by this audit, some congressional members want the program suspended. See the following article for more information! Pentagon

Potential for No More DCAA Incurred Cost Audits!

There is a potential that defense government contractors will no longer see DCAA incurred cost audits beginning October 1, 2018, according to Aronson Fed Point.  A new board has been appointed for Fiscal Year 2017 to oversee cost accounting standards across all of the Department of Defense.  See the following article from Aronson Fed Point