AICPA Quality Management Standards

AICPA Quality Management Standards 150 150 CAA - Capital Accounting Advisory

I’ve posted about AICPA quality management standards back in August. Once again, I’m grateful for the opportunity to work with Diane Walker from Johnson Lambert LLP and contribute to the VSCPA Disclosures magazine once again!

Here is a quick update on what’s coming up next in regard to quality management standards:

On August 25, 2023, AICPA issued the exposure draft, Proposed SSAE Amendments to the Attestation Standards for Consistency With the Issuance of AICPA Standards on Quality Management.

The exposure draft would amend SSAE No. 18, including sections 105, and 320, SSAE No.19, 21, and 22. The comment period for this exposure draft ends on December 1, 2023.

This is a great opportunity to carefully evaluate the proposed changes, consider their potential impact, and offer your professional opinion.

View the original article here.

Natalya Yashina

Founder and CEO

Can we promote innovation by reducing remote work?

Can we promote innovation by reducing remote work? 150 150 CAA - Capital Accounting Advisory

Innovation is a buzzword that has been thrown around in the business world for years. We think we know what innovation is. Companies think that they know as well. State-of-the-art innovation centers are created, and innovation committees are established, however not every company can call their innovation efforts a success.

Why is that?

Innovation happens when people reach an internal consensus between their minds and souls. It happens in environments where high morale and dedication to the organization’s vision and mission prevail. Unfortunately, this internal consensus cannot be created by reduction of remote work benefits or additional monetary and other rewards. It has to happen organically, as part of the organization’s culture. This means that leaders need to foster a culture of collaboration, trust, and openness. They need to create an environment where employees feel comfortable sharing their ideas and are encouraged to think outside the box.

Innovation is a key driver of growth, progress, and success in modern organizations. However, many innovation committees and teams find themselves stuck in a rut, unable to generate truly creative and transformative ideas. One of the main reasons for this is that we often approach innovation with a narrow, risk-averse mindset. We try to fit our ideas into pre-existing boxes, constrained by budgets, policies, and other regulatory factors.

To truly innovate and think outside of the box, we need to cultivate a different mindset. Instead of immediately judging new ideas based on their feasibility, we should allow them to exist in their own right, giving them the space to develop and grow. This means embracing a mindset of experimentation, iteration, and risk-taking. It means being willing to challenge our assumptions, break down barriers, and explore new possibilities.

Reducing remote work benefits in the name of innovation will unlikely generate the desired results. The ability to work remotely is a highly valued benefit for many employees and taking it away could lead to a decrease in employee satisfaction.

Innovation is not necessarily a result of physical proximity. Instead, it is driven by a positive workplace culture that encourages new ideas and experimentation. Removing remote work benefits could send the message that the company is not supportive of work-life balance, which could negatively impact morale and hinder innovation. Building a culture of innovation requires a focus on removing barriers that stand in the way of new ideas, rather than reducing benefits.

Natalya Yashina

Founder and CEO

Focusing on strengths

Focusing on strengths 150 150 CAA - Capital Accounting Advisory

It’s a common tendency to focus on the negative aspects of a situation, whether it’s at work or at home. We often try to identify what went wrong or what could go wrong, thinking that this might help us avoid similar problems in the future. However, this approach doesn’t always lead to positive change, and it can sometimes be counterproductive. Instead, it might be more effective to focus on what went well and build upon that.

When we focus on what went well, we can identify the strengths and positive aspects of a situation. This can help us feel more energized, motivated and optimistic, and create even better outcomes in the future.

If you want to create a more supportive and constructive environment, where people feel valued and encouraged to do their best, take some time to identify and celebrate your team’s strengths.

Natalya Yashina

Founder and CEO

Why does the accounting and CPA pipeline crisis exist?

Why does the accounting and CPA pipeline crisis exist? 150 150 CAA - Capital Accounting Advisory

The accounting and CPA pipeline is facing a crisis, and it is essential to find solutions to address the key issues. One of the problems is the lack of consideration for profession portability and a decreased interest among students to the field of accounting. Many students are attracted to other fields such as finance, marketing or even technology.

Making the transition from public accounting to industry or vice versa can also be a challenging process, especially for senior audit professionals. Each environment has its own unique set of demands and expectations, which can require significant adjustments in skills, mindset, and work style.

When it comes to the public accounting industry, the audit function is a critical area that ensures the accuracy of financial statements. However, the operation and function of audit teams remained stagnant contributing to inefficiencies that can be avoided with the implementation of new technologies and procedures.

A patent-pending business method has been developed to revolutionize the industry, with a multi-pronged approach incorporated into the Innovative Audit Team Pilot Program offered by Capital Accounting Advisory, LLC. This innovative approach aims to improve audit quality, effectiveness, efficiency, and profitability.

By implementing this new approach, accounting and CPA firms can improve their operations, increase their competitiveness, and attract and retain top talent. It also provides professionals with more flexibility and portability in their careers, which can help address the talent shortage in the industry.

Overall, the Innovative Audit Team Pilot Program represents a significant step forward, providing a solution to some of the challenges faced by the industry.

Natalya Yashina

Founder and CEO

What’s the risk?

What’s the risk? 150 150 CAA - Capital Accounting Advisory

I’m honored to be a contributor to the latest issue of the Virginia Society of CPAs Disclosures magazine. Together with Diane Walker, CPA, a partner from Johnson Lambert LLP, we covered the updated quality management standards that focus on a risk-based approach to planning and performing audits.

Audit quality is a crucial element for the audit profession, as it helps ensure public trust. It’s not just about ticking boxes, but rather about ensuring that the audit process is performed thoroughly, timely, and efficiently. This is where the updated quality management standards come into play, as they provide guidance on a risk-based approach to planning and performing audits.

It’s understandable that implementing the new standards may be a challenge for some firms, and it’s a good idea to start preparing early, especially since the standards will be effective for periods beginning on or after December 15, 2025. It’s important for firms and teams to assess their current organizational structure and staffing and make necessary adjustments to ensure they are in compliance with the new standards.

Read the full article here.

Natalya Yashina

Founder and CEO

It’s time to change the way audit firms work

It’s time to change the way audit firms work 150 150 CAA - Capital Accounting Advisory

Accounting firms and the accounting profession are grappling with an ongoing staffing crisis. While options like offshoring and subcontracting provide short-term relief, they may not be sustainable, especially for audit practices. The commoditization of audits has led to reluctance from companies to pay higher fees, limiting firms’ ability to subcontract work or enhance employee compensation. Recruiting new audit staff is challenging, with various underlying factors contributing to the overall decrease in accountants.

Currently, accounting firms are heavily relying on human resource and recruiting functions to address the shortage crisis. Despite efforts such as increased benefits, attractive 401K plans, and additional fringe benefits, the shortage persists.

It is imperative to move beyond traditional human resource solutions and adopt an organizational development perspective to tackle this shortage. To break free from the perpetual resource crisis, a shift in the way audit teams operate is necessary.

Interested in learning more? Contact CAA today!

Happy New Year! (2023)

Happy New Year! (2023) 150 150 CAA - Capital Accounting Advisory

Over a year ago I became interested in a PhD in accounting program. I extensively researched all available programs and scholarships which ultimately led me to abandon my aspirations of earning a PhD in accounting. Scholarship-based programs don’t have remote/online study options and I wasn’t going to move my entire family for the sake of earning a PhD. Ultimately, I decided to pursue a master’s degree in organization development and change management at Penn State University. This was the best decision that I could have made. Organization development often reminds me of audit work. For example, gaining an understanding of an organization, its processes, procedures, etc. is very similar to gaining an understanding of an entity and its environment that auditors must grasp.

In addition to professional facilitation and training services that I’ve been offering for over a year, I began offering organization development and change management services to audit firms. As a CPA and former auditor, I have situational awareness and understanding of how audit firms operate as well as challenges that so many firms are currently facing. The most exciting news is that in 2023, I will be offering these services to non-profit organizations.

One of the biggest challenges that accounting firms are facing today is staffing. I wrote about innovative ways to address the current staffing crisis in the VSCPA Disclosures magazine. The issue of staffing in accounting firms is multi-layered and very complex. While outsourcing and offshoring can temporarily solve staffing issues, not all firms can implement these types of solutions. We must seek and implement more long-term solutions for sustained success. This is where organization development and change management comes in.

Looking back at 2022, I’m grateful for the opportunity to shift my focus from technical accounting to providing research-based organization and change management insights and contributing to the accounting profession in a different way. I’m also grateful for opportunities to help transform more firms and organizations in the upcoming year.

Are you ready for your transformational change in 2023?

Happy New Year!

Natalya Yashina

Founder and CEO

Back to top