PCAOB to Ask for Additional Comments on Lead Auditors Proposal
Before approving a rule to improve the lead auditor’s oversight of other accounting firms’ audit work, the Public Company Accounting Oversight Board (“PCAOB”) plans to ask for another round of comments. According to its recently updated standard-setting agenda released on July 6, the PCAOB needs to consider the issuance of a “supplemental request for comment” later this year.
The board issued Release No. 2016-002, Proposed Amendments Relating to the Supervision of Audits Involving Other Auditors and Proposed Auditing Standard—Dividing Responsibility for the Audit With Another Accounting Firm, to help lead auditors with the supervision of the work other firms perform when auditing large or multinational companies. The first set of comments were due last July. At a Standing Advisory Group meeting in May, PCAOB Chief Auditor Martin Baumann remarked that issues raised in the first round of comment letters were being addressed. Some of those issues came from major accounting firms, which asked for changes prior to finalizing the rule. The supplemental request document is expected to call for detailed feedback on several issues that were raised during the initial comment period.