Establish firm leadership’s responsibility and accountability for quality management and require an annual evaluation of effectiveness. Modernize the standards so they are relevant and compatible with the innovations taking place in the profession. For example, where an element in the old standard referred to the “human resources” element of the system of quality control, the new standard refers to a resources element that includes human, intellectual, and technological components. The requirement to document and test all processes, process risk points, and controls is where the quality management standards most resemble the rules for implementing SOX 404(b). The processes are all in place, Peo said, but documenting and testing them is a different challenge. “Some people thought the same thing about SOX 404 when they first implemented,” Peo said. “It was like, ‘How hard can that be?’ They already have the processes in place. And you pretty quickly realized, it’s a different exercise when you have to go through and document it all and then test it.” “My first piece of advice,” Haskell said, “would be to figure out where you are in relation to the new standard, figure out the quality objectives in the new standard, and line them up against what you’re measuring today as part of your system of quality control.” Experts say it’s critically important that the standards can be easily applied to audits of all levels of complexity at all the various sizes of firms. “There could be different challenges for different sets of firms, depending on how the standards are written,” said Brian Croteau, CPA, a partner in the National Quality Organization of PwC’s Assurance Practice and Regulatory Risk and Quality Control leader. “But the good news is that it seems the standard setters and regulators are focused on that issue and really are trying to think about how to write the standards, or in the IAASB’s case, already wrote the standard, in a way that they believe is sufficiently scalable to firms of all sizes.” Nonetheless, firms of different sizes will have different challenges with implementation. Smaller firms may struggle with this effort because they don’t possess the resources that larger firms can rely on for implementation. On the other hand, processes and controls at small firms that perform less-complex audits won’t be as complicated, so they will be easier to document. “When you have a huge firm, things can get pretty complicated just from a process standpoint because there are so many people and so many different types of audits,” Peo said. “I think smaller firms will have a challenge, but I think they’re probably just different challenges from larger firms.” Although implementation may be burdensome, experts say it’s worth it because they believe the standards ultimately will result in better performance on audits. “A strong system of quality control provides the framework for consistent execution of high-quality audits at the engagement level,” said Christine Davine, CPA, national managing partner for quality, risk, and regulatory for Deloitte & Touche LLP. “That framework then positions our engagement teams for success on their audits.” The standards add to a groundswell of support in the profession for improving the training, tools, and processes that lead to improved performance on audits. It has been almost seven years since the AICPA embarked on its Enhancing Audit Quality initiative, which has provided resources and guidance for firms and practitioners to use in their pursuit of continuous improvement.https://www.journalofaccountancy.com/news/2021/feb/new-standards-drive-toward-better-audits.html
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The eight-time Gold Glove winner and four-time Silver Slugger winner was acquired in a trade with the Colorado Rockies on Feb. 1. Manager Mike Shildt said, "I understand St. Louis is a lot of warm and fuzzy even in a cold temperature right now for a lot of reasons, including Nolan. ... He's a pillar to what we're doing as far as being strong on both sides of the baseball. And he also is a high-character guy that is super dedicated about winning and loves the game of baseball. He's going to fit right in." --The Cincinnati Reds opened spring training in Goodyear, Ariz., without a clear choice of who will play shortstop this season. The candidates for the position include Jose Garcia, Kyle Holder, Kyle Farmer, Dee Strange-Gordon and Alex Blandino. "I feel great about the options we have," Reds manager David Bell said. "I'm not ready today to name a starting shortstop by any means, but at the same time, we know who we have. We're familiar with our personnel and the options that we have at that position, and we feel great about that." --Right-hander Frankie Montas and catcher Sean Murphy were absent due to medical situations when the Oakland Athletics' pitchers and catchers reported to spring training in Mesa, Ariz. Montas tested positive for COVID-19, according to manager Bob Melvin, while Murphy recently underwent surgery for a collapsed lung. Montas is at his home in Scottsdale, Ariz., and battling the virus, according to Melvin. --The Padres signed veteran reliever Mark Melancon, MLB Network reported. Melancon, a three-time All-Star who turns 36 in March, will receive a $2 million salary in 2021 and has a $1 million buyout option for 2022, per the report. The right-hander was 2-1 with 11 saves and a 2.78 ERA in 23 games with the Atlanta Braves in 2020. --The Miami Marlins signed free agent outfielder Adam Duvall to a one-year contract with a mutual option for 2022. Contract terms were not announced, but reports indicated the deal is worth at least $5 million guaranteed. The 32-year-old hit .237 with 16 home runs, 33 RBIs and a .532 slugging percentage last season with the Atlanta Braves.https://sports.yahoo.com/spring-training-notebook-padres-blake-055507458.html