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At-A-Glance
The world of accounting and audit has come a long way since the introduction of the 10-key adding machine over a century ago. Today, highly integrated, cloud-based systems explore the depths of sophisticated, multi-layered corporate domains with speed and precision. One such application, Dynamic Audit Solution (DAS), was developed by a partnership between the AICPA, Caseware International, and CPA.com. This issue of the Audit & Accounting Alert highlights the advancements that have been made.
Also, our Worldwide Update covers news from organizations across the globe.
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Embracing the Audit of the Future
Powerful tools enhance the audit process
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When the Audit & Accounting Alert launched in 2012, the first issue focused on the “global financial turmoil” that characterized the accounting community. Efforts by COSO, IFAC, The EC, and PCAOB to bring stability were featured. Nowadays, organizations like these are addressing contemporary challenges.
The Economic Times’ CFO.com in a May 2025 article uses five forces to describe current conditions:
- Technology-led transformation
- Real-time cloud-based accounting
- Data management
- Global capability centres
- ESG accounting
These forces are having a growing and continual impact on the direction of accounting and auditing, though ESG efforts are facing political and legal challenges, as reported recently in the Harvard Business Review. Pervading all of the forces is the emerging presence of artificial intelligence, adding new dimensions for consideration.
The August 2021 issue of the A & A Alert described an integrated platform under development by the AICPA, Caseware International, and CPA.com called Dynamic Audit Solution (DAS), designed to address the challenges. DAS was subsequently launched in June 2023. A variety of competitors have also come online.
When I started out as a CPA in the 1960’s, the 10-key adding machine, commercially available since 1914, was the accountant’s workhorse, a more practical tool than the comptometer, which had been around since 1887. Of course, at the end of a financial audit, comptometer operators were still called upon to double check the totals of voluminous computer reports, using comptometers.
Green paper, 12-column, worksheets were the mainstay for recording the data that was produced. That began to change in 1977, when the Apple II computer was released, followed by the IBM Personal Computer (PC) in 1981. However, the milestone for accountants came in 1979 with the invention of VisiCalc, a computerized spreadsheet that could automatically add up columns of numbers and perform various calculations. Lotus 1-2-3 outpaced VisiCalc in 1983, but they were both outdone by Microsoft Excel, which came on the scene in 1985 as a Windows-based application.
As stated on the AICPA website, Dynamic Audit Solution (DAS) is “powered by a transformative methodology developed by the AICPA, in partnership with audit professionals from leading firms… DAS features guided workflows, real-time collaboration, and a fully integrated methodology from start to finish to support an enhanced auditor and client experience.”
While the earlier tools helped to speed up and automate numerical tasks, products like DAS vastly expand the capability to assess and analyze vast amounts of data, both internal and external, to provide advanced insights as well as point the user in directions that may not have been as readily apparent with previous methods.
A goal all along has been to free up the mind from the mundane in order to focus on the constantly growing complexities of the modern world. Just as important will be the advancement of checks and balances to maintain control of the revolutionary achievements. In this regard, PwC just announced on June 3, 2025, the release of Assurance for AI – “a first-to-market set of services and solutions to provide independent assurance and other related services over artificial intelligence (AI) systems. This will help businesses meet a growing need over their AI—providing confidence that it’s designed, deployed, and operated responsibly, transparently, and, in a growing number of situations, aligned with regulatory expectations.”
Further details can be found at DAS: The future of audit is now.
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Worldwide Update
Periodic roundup of recent and upcoming actions and activities by auditing and accounting organizations throughout the world.
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International
IASB – International Accounting Standards Board (www.ifrs.org)
- Educational materials for 1) Greenhouse Gas Emissions Disclosure, 2) Implementation of the IFRS for SMEs Accounting Standard, and 3) Going Concern, published in May 2025, to support application of the standards.
IFAC – International Federation of Accountants (www.ifac.org)
IFR4NPO - International Financial Reporting for Non-Profit Organisations (www.ifr4npo.org)
IOSCO – International Organization of Securities Commissions (www.iosco.org)
ACCA – Association of Chartered Certified Accountants (www.accaglobal.com)
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Africa, Europe, India and the Middle East (AEIME)
FRC – Financial Reporting Council of the UK (www.frc.org.uk)
- What is an audit?, summary document published May 20, 2025, “provides stakeholders with insights into the key considerations and principles that guide a successful audit. It also sets out the key public interest benefits that audit provides.”
ICAEW - Institute of Chartered Accountants in England and Wales (https://www.icaew.com/)
- Audit Monitoring Report 2025, issued May 27, 2025, “provides information on the results of our monitoring for the year ended 31 December 2024.”
EC – European Commission (https://ec.europa.eu/)
EFRAG – European Financial Reporting Advisory Group (www.efrag.org)
- Roundtable Discussion – Practical Considerations for Connecting Financial and Sustainability
Reporting, webinar report issued April 25, 2025, “consisted of an overview of EFRAG’s research project on connectivity, the presentation of four illustrations of connectivity, and follow-up discussions among eight multifunctional experts (three preparers, two users, two auditors and one enforcer) on the illustrations and practical aspects of connectivity.”
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Americas, Asia, Australia and New Zealand (AAANZ)
AICPA & CIMA – American Institute of Certified Public Accountants (www.aicpa.org)
FASB – Financial Accounting Standards Board (www.fasb.org)
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Business Combinations and Consolidation - Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity, ASU 2025-03, issued May12, 2025, “to improve the requirements for identifying the accounting acquirer.” Effective for annual reporting periods beginning after December 15, 2026.
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Compensation—Stock Compensation and Revenue from Contracts with Customers - Clarifications to Share-Based Consideration Payable to a Customer, ASU 2025-04 issued May 15, 2025, “to reduce diversity in practice and improve the decision usefulness and operability of the guidance for share-based consideration payable to a customer in conjunction with selling goods or services.” Effective for annual reporting periods beginning after December 15, 2026.
GASB – Governmental Accounting Standards Board (www.gasb.org)
- Severe Financial Stress and Probable Dissolution Disclosures, preliminary views document issued March 19, 2025, “to address issues related to disclosures regarding going concern uncertainties (GCU) and severe financial stress (SFS) with the intention of making clarifications and improvements to the existing GCU guidance to reduce diversity in practice and providing guidance for disclosures related to SFS.” Comments Due: June 30, 2025.
COSO - The Committee of Sponsoring Organizations of the Treadway Commission (www.coso.org)
PCAOB – Public Company Accounting Oversight Board (www.pcaob.org)
- Audit Focus: Auditing Accounting Estimates, publication issued May 21, 2025, “provides auditors with reminders and good practices about accounting estimates, an especially challenging aspect of financial statements.”
SASB – Sustainability Accounting Standards Board (www.sasb.org)
SEC – Securities and Exchange Commission (www.sec.gov)
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Audit & Accounting Alert is a publication of Integra International intended to highlight emerging issues in the profession. The goal is to give Integra members an awareness of developments impacting the practice of Audit & Accounting enabling them to stay on the forefront of industry trends.This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
Editor Gerald E. Herter
www.Integra-International.net
© 2021 Integra International. All Rights Reserved.
If you wish to stop receiving email from us, you can simply remove yourself by visiting @@unsubscribe_url@@.
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