An audit expert's perspective: Meet the expert - James Ulvog

He also does the technical review for the GAAS Guide, the GAAS Practice Manual, Knowledge Based Audit of Not-for-Profit Entities and the core title of the Preparation, Compilation and Review Guide further underscoring his deep technical knowledge and commitment to maintaining high standards in the profession.

Informed by his experience, James’s writing process is meticulous. He enjoys the challenge of explaining complex accounting concepts in a clear and understandable way, drawing on his background as a teacher and instructor. His work on the Guide to Quality Management and Peer Review is particularly noteworthy, as it addresses the upcoming changes in quality management standards and provides practical tools for implementation.

Partnering with Wolters Kluwer

James’s partnership with Wolters Kluwer began serendipitously during a nonprofit update class. The instructor had a unique way of engaging the class by handing out a quiz with multiple-choice and true/false questions. Participants who answered incorrectly were asked to sit down, leaving only those with correct answers standing. By the end of the quiz, James was the last person standing, having correctly answered all the questions. This caught the attention of a Wolters Kluwer editor, who approached him after the class and invited him to contribute to their publications.

Initially hesitant due to his busy schedule, James quickly realized the opportunity this presented and agreed to collaborate. His first project involved a technical review of the audit tool for nonprofit entities, which aligned perfectly with his expertise. James values the collaborative process with Wolters Kluwer mostly because it ensures that the content is technically accurate and up to date, creating high-quality audit tools that benefit the entire profession.

The value of knowledge-based tools

Wolters Kluwer’s knowledge-based tools are designed to be scalable and adaptable, making them suitable for both large and small firms, and they undergo a rigorous review process, a step that James appreciates. The involvement of experienced CPAs at multiple stages of the development process ensures that the tools are technically correct and current.
One of the tools James finds particularly useful is the Disclosure Checklist. Although extensive, the checklist can be tailored to fit the specific needs of his practice. For example, James annually reviews it to remove items that do not apply to his clients and organizes the remaining items in a way that streamlines his workflow. This customization capability makes the tools like the Disclosure Checklist highly efficient and effective for his practice.

The knowledge-based tools also incorporate practice alerts for changes in professional literature that are in draft mode or not yet effective. This forward-looking approach helps auditors stay ahead of upcoming changes and ensures that they are prepared to implement new standards as they become effective. The comprehensive nature of these tools, combined with their adaptability, significantly enhances the audit process, improving both efficiency and audit quality.

Insights from James

James offers valuable advice to those starting out in the auditing field, emphasizing the importance of embracing change and taking responsibility for one’s professional development. With the constant evolution of auditing standards, he encourages auditors to stay informed and proactive in their learning.

To illustrate the ongoing changes in the accounting world, he uses a vivid analogy. The waves of new standards are like tidal waves approaching the shore. Just as one wave hits, another is already on the horizon. For instance, the tidal waves of revenue recognition, lease accounting, and credit losses have already washed over the profession. Now, auditors face new waves, such as quality management standards and environmental, social, and governance (ESG) reporting.

Rather than being overwhelmed by these waves, James advises auditors to embrace them. He suggests that instead of fearing the changes, auditors should “grab their surfboards and ride the waves.” This means actively engaging with new standards, learning them thoroughly, and implementing them effectively. Ignoring these changes, he warns, could lead to significant challenges during peer reviews and in maintaining audit quality.

Taking personal responsibility for professional development is another key point he stresses. While firms may provide the necessary hours to meet minimum continuing professional education (CPE) requirements, auditors must go beyond this. Attending additional conferences, studying new standards in-depth, and continuously seeking to improve one’s knowledge and skills are essential. By doing so, auditors can stay ahead of the curve and ensure they are well-prepared for the future.

Looking ahead, James is excited about the future projects he is working on, particularly the updates to the Guide to Quality Management and Peer Reviews. He looks forward to incorporating new insights and practical tips to help firms implement effective quality management systems. His ongoing commitment to the profession and his passion for nonprofit auditing make him a valuable resource for auditors everywhere.