Auditing the Auditors
The International Forum of Independent Audit Regulators (IFIAR) recently released its second annual Survey of Inspection Findings for the year 2013. The report includes findings from IFIAR membersâ€™ (international audit regulators independent of the audit profession) inspections of audit firms, primarily those associated with the largest international audit firm networks. Findings from audit firm activities were reported from three categories: audits of listed public interest entities (PIE), audits of systemically important financial institutions (SIFI) and global systemically important banks (G-SIB). The highest number of findings for PIEs included, fair value measurement, internal control testing, and adequacy of financial statements and disclosures. The highest number of findings for SIFIs and G-SIBs included, audit of allowance for loan losses and loan impairments, internal control testing, and audit of the valuation of investments and securities. For a full breakdown of the investigation and recommendations, please visit the IFIAR website.