Year-end toolkit: Audit reminders for preparers

4 snips

Jan 7, 2025

In this insightful discussion, Brian Croteau, PwC's U.S. Chief Auditor, shares expert reminders for year-end audits. He highlights key takeaways from the recent AICPA & CIMA conference, emphasizing audit quality and stakeholder engagement. Listeners will learn about the importance of robust documentation for new accounting standards, assessing financing risks, and the implications of significant contract modifications. Croteau also tackles issues like independence risks and unexpected fraud, while addressing the role of AI in financial reporting.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Quality Is Bipartisan And Constant

Post-election regulatory change is likely but quality and trust in reporting remain bipartisan priorities.
Focus on current rules and standards even while monitoring future regulatory shifts.

ADVICE

Prepare Pillar Two Data Now

Establish processes and systems now to capture Pillar Two and country-by-country tax data even if current-year impacts seem immaterial.
A correct initial data base prevents future material surprises as more jurisdictions apply the rules.

ADVICE

Align Segment Reporting With CODM Views

For segment reporting, assess what the CODM regularly reviews and whether omitted items are recomputable.
If information reviewed by the CODM can be recomputed, it may meet the significance threshold.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

In each episode of our Year-end toolkit series, our guests share insights on key areas of the year-end accounting and reporting process. The conversations are relevant for all finance teams, even if it’s not year-end close time. And it’s relevant even for those not engaged in the company’s closing process – the episodes have something for everyone.

In this next episode of our miniseries, we discuss audit-related reminders for preparers with Brian Croteau, PwC’s US Chief Auditor. In this episode we share timely insights for preparers to consider for the year-end audit, which is another important part of year-end accounting and reporting.

In this episode, we discuss auditing considerations related to:

3:13 – Key takeaways from the AICPA & CIMA Conference: Current SEC and PCAOB Developments
12:06 – Accounting policies and controls
20:28 – The execution or modification of significant contracts and agreements
23:08 – Complete and accurate disclosures within the financial statements
26:48 – Independence
28:54 – Known or suspected fraud or illegal acts
34:44 – AI in financial reporting

For more information about key developments at the AICPA & CIMA conference, see our publication, 2024 AICPA & CIMA Conference: Current SEC and PCAOB Developments. Also, check out our other episodes in this miniseries:

Additionally, follow this podcast on your favorite podcast app for more episodes.

Brian Croteau is the US Chief Auditor. He oversees the establishment and maintenance of PwC’s audit policies and practices, leads efforts to directly support PwC’s audit quality objectives, and plays a key role in the monitoring and assessment of audit quality. He also leads the firm’s efforts related to its relationship with the PCAOB, including supporting all aspects of the PCAOB’s inspection process. Brian currently serves as a member of the PCAOB’s Standards and Emerging Issues Advisory Group (SEIAG) and the SEIAG’s Emerging Issues in Auditing subcommittee. Prior to rejoining PwC, he served as the Deputy Chief Accountant of the Professional Practice Group within the Office of the Chief Accountant at the SEC where he played a key role in the SEC’s oversight of the activities of the PCAOB, managed the resolution of auditor independence issues and ethical matters, and monitored audit and independence standard setting internationally.

Kyle Moffatt is PwC’s Professional Practice leader, leading a team responsible for working with standard setters and regulators as well as delivering brand-defining thought leadership and educational materials. He also consults with engagement teams and audit clients on SEC reporting matters. Before PwC, Kyle spent almost 20 years with the SEC, most recently as Chief Accountant and Disclosure Program Director in the Division of Corporation Finance.

Transcripts available upon request for individuals who may need a disability-related accommodation. Please send requests to us_podcast@pwc.com.

Did you enjoy this episode? Text us your thoughts and be sure to include the episode name.