SEC Seeks Comments on PCAOB’s Auditor’s Report Standard
The Securities and Exchange Commission (“SEC”) wants feedback on the Public Company Accounting Oversight Board’s (“PCAOB”) auditing standard, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion. Recently, the SEC issued the related document for public comment, Notice of Filing of Proposed Rules on The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, and Departures from Unqualified Opinions and Other Reporting Circumstances, and Related Amendments to Auditing Standards. Subject to SEC approval, the PCAOB standard is intended to improve the effectiveness of the auditor’s report by. Read More.
PCAOB Standard-Setting and Research Agendas Updated
The Public Company Accounting Oversight Board’s (“PCAOB”) Office of the Chief Auditor (“OCA”) has updated its standard-setting agenda. Revised as of June 30, the periodic update reflects the PCAOB’s standard-setting and research agendas, and includes the OCA’s standard-setting agenda, scheduled milestones, and recent developments including the following: Auditor’s Reporting Model (adopted in June by PCAOB and awaiting the Securities and Exchange Commission’s approval) Auditing Accounting Estimates, Including Fair Value Measurements (exposure draft comment period ends Wednesday, August 30) The Auditor’s Use of the Work of Specialists (exposure draft comment period ends Wednesday, August 30) Supervision of Audits Involving Other Auditors. Read More.
Topics: audit quality control systems, Auditing Accounting Estimates (AS 2501), Auditor's Reporting Model, Auditor's Use of the Work of Specialists, Data, PCAOB, PCAOB Office of the Chief Auditor, PCAOB Research Agenda, PCAOB Standard-setting Agenda, Public Company Accounting Oversight Board "PCAOB", Securities and Exchange Commission "SEC", Technology
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. Read More.
Standing Advisory Group Nominees Being Accepted
Nominations are being accepted for the 2018-2020 term of the Public Company Accounting Oversight Board’s (“PCAOB”) Standing Advisory Group (“SAG”). Announced in its June 13 press release , the PCAOB seeks candidates with accounting, auditing, corporate finance, corporate governance, or investing experience. Nominees familiar with auditing or financial reporting for broker-dealers and small public businesses are also requested. Self-nominations are also permitted. SAG nominee submissions are due by Saturday, August 12. Selected individuals will be announced in December, and will begin serving three-year terms in January 2018.
PCAOB Wants to Improve Rules for Work of Specialists
Seeking to reinforce the applicable requirements for auditors that use the work of specialists in an audit, the Public Company Accounting Oversight Board (“PCAOB”) has issued the proposal, Proposed Amendments to Auditing Standards for Auditor’s Use of the Work of Specialists. The proposal aims to advance investor protection by improving the requirements for reviewing the work of company specialists, and applying a risk-based method to assessing the work of a specialist hired by the auditor. Specialists are often hired or appointed by companies to offer information used in preparing financial statements, and their work is frequently used as audit evidence.. Read More.
PCAOB Proposal to Address Auditing Accounting Estimates
A new proposal by the Public Company Accounting Oversight Board (“PCAOB”) seeks to strengthen the applicable requirements for auditing accounting estimates. Issued as Proposed Auditing Standard for Auditing Accounting Estimates, Including Fair Value Measurements, the proposal advises auditors to use professional skepticism and give added attention to possible management bias while auditing accounting estimates. Auditors have had issues auditing some accounting estimates, causing PCAOB inspectors to flag deficiencies at both small and large audit firms. Such deficiencies have raised concerns on auditors’ application of professional skepticism and their consideration of possible management bias. In response, the PCAOB proposes a new. Read More.
Topics: and Investments in Securities (AS 2503), Auditing, Auditing Accounting Estimates (AS 2501), Auditing Derivative Instruments, Auditing Fair Value Measurements and Disclosures (AS 2502), Fair Value Measurements, Hedging Activities, PCAOB, Public Company Accounting Oversight Board "PCAOB"