In an ever-changing regulatory environment, audit professionals must keep abreast of current developments in auditing and attest services. Timely and focused Audit Training enables stakeholders to quickly understand new standards, contend with ever-changing and more complex reporting requirements, and improve audit quality. Auditors need to be prepared to rapidly adjust, from revised risk assessments to changes in ESG disclosures, in order to meet expectations and remain compliant.

Enhanced Risk Assessment Standards

Implementation of upgrades in risk assessment standards through revision of SAS No. 145 provides increased emphasis on understanding the client’s business environment. Auditors are increasingly “digging deep” into IT controls, entity-level risks, and fraud vulnerabilities. Audit teams would be instructed in the application of enhanced standards in order to design audit approaches that are more responsive and detailed in accordance with identified risks.

ESG Considerations in Audit Training

The ESG assurance being asked for is becoming highly significant in the eyes of auditors. As organizations increase their disclosures on ESG, assurance that this nonfinancial information is reliable becomes a demand from their stakeholders. Auditors must be prepared to analyze the ESG framework, data, and the integrity of reporting. Including ESG topics in Audit Training thus prepares professionals to execute these emerging assurance services in confidence and to a level of credibility.

Cyber Security and IT Controls

In the face of growing cyber threats, internal controls over IT systems have taken precedence in the current period audits. Auditors must assess cyber security frameworks, third-party risks, and digital controls within financial reporting. IT controls have entered the domain of audit training as audit staff now needs to have an understanding of data integrity and access management. It is part of the training in audits to equip auditing staff to evaluate IT environments by bringing in cyber security risk evaluation in their audits.

Auditor Independence and Ethics

With more scrutiny being placed on auditor independence and ethical behavior, firms must bolster their policies and amend relevant training. The independence risks include, among others, providing non-audit services, developing too close client relationships, and having a long tenure. Regular training on independence and ethics is a good solution and would keep firms in line with AICPA, PCAOB, and GAO standards to diminish the risk of audit failure and reputational harm.

Closing Thought

The compliance environment has changed, and audit expectations will keep changing. It is then upon the firm to remain informed on the latest developments in audit and attests services so that value delivery continues. Additionally, continuous Audit Training  prepares professionals to focus on the hot topics of the day: ESG, cyber security, and updated risk standards, thus putting them in a position to lead with an informed eye and the highest standards of audit quality.