Risky Business: Do You Know it When You See it?

Source: CPA Success

The business world may be riskier than ever before. Consider this:

• The Public Company Accounting Oversight Board (PCAOB) has adopted eight new auditing standards — subject to SEC approval — that would instruct auditors on assessing and responding to risk.
• According to a report by Ernst & Young, “regulation and compliance” is the top risk for businesses today. Many of these risks are related to reforms prompted by the global financial crisis. Other risks listed in the report include access to credit, the recession, managing talent, and emerging markets.
• The SEC is pressuring companies to provide more information in financial statements and other filings about the risks they face.

In this environment, auditors are well advised to educate themselves about current and proposed risk assessment standards.

For the complete blog entry, click here.

From CPA Success, the blog of the Maryland Association of CPAs, www.cpasuccess.com, August 6, 2010, “Business is riskier than ever. Ask the regulators.”