PCAOB Considering Revenue Recognition Interpretive Guidance for Auditors
Auditors could receive interpretive guidance on the Financial Accounting Standards Board’s (“FASB”) revenue recognition standard. Last month, Public Company Accounting Oversight Board (“PCAOB”) Chief Auditor Martin Baumann said a project is in the works to determine what type of guide the board should release concerning Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers (Topic 606). To help public companies implement ASU No. 2014-09, Baumann remarked that the PCAOB is considering releasing an Audit Practice Alert. The PCAOB staff has already reviewed Staff Audit Practice Alert (“APA”) No. 12, Matters Related to Auditing Revenue in an Audit of. Read More.
Topics: Accounting Standards Update "ASU", Audit Practice Alert, audits, FASB, FASB Accounting Standards Codification, Financial Accounting Standards Board "FASB", PCAOB, Public Company Accounting Oversight Board "PCAOB", Revenue from Contracts with Customers (Topic 606), Revenue Recognition, Staff Audit Practice Alert
PCAOB Proposes Enhancements to Lead Auditor’s Oversight of Other Auditors
The Public Company Accounting Oversight Board (“PCAOB”) issued a proposal to strengthen the requirements for a lead auditor’s supervision of other auditors. Offering a more consistent approach, the proposal is intended to increase a lead auditor’s oversight and enhance its ability to avoid or identify deficiencies in the other auditors’ work. The proposal also introduces a new standard and features amendments to existing standards, such as the following: Requiring additional specific procedures that prompt the lead auditor to boost its involvement through increased communications and tougher evaluations of other auditors’ qualifications and work. Clarifying that, to serve as lead auditor,. Read More.