Depositors blame bank failures on audit firms

Banking depositors perceive failures at financial institutions as failures on the part of auditors, reducing their assessment of the credibility of an auditing firm, according to a new study. The study, which appears in the Accounting Review, a publication from the American Accounting Association, found negative perceptions of an audit firm that worked with a collapsed…

Inherent risk and SAS No. 145: New concepts and requirements

(Editors’ note: All quoted material in this article comes from SAS No. 145, Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement, as codified in AU-C Section 315.) Revised risk assessment guidance will require auditors to apply new concepts for calendar year 2023 audits. The concept of inherent risk will remain a…