Question: According to the Information about 2016 Inspections, the PCAOB states, Audit areas where deficiencies have been identified in previous inspection cycles, including internal control over financial reporting, assessing and responding to risks of material misstatement, and accounting estimates, including fair value measurements. Recurring audit deficiencies continue to be identified in the most frequently selected financial reporting areas, such as revenue, non-financial assets, inventory, and financial instruments.
What can auditors do in order to combat these deficiencies? Name an example from one or several of the cases were one of these deficiencies occurred and ways to combat the deficiency in the future. (answer in essay form, min. of 500 words, be detail and specific)