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PCAOB & Danish Business Authority Form Cooperative Agreement

To help oversee audit firms bound by regulatory jurisdictions, the Public Company Accounting Oversight Board (“PCAOB”) has announced a cooperative arrangement with the Danish Business Authority (“DBA”). Similar to arrangements with European Union members and other regulators, the PCAOB’s agreement with the DBA provides framework for shared inspections and information exchanges compliant with the Dodd-Frank Act. Due to the reform’s provisions, the PCAOB can share confidential information with non-U.S. counterparts in certain situations. Additionally, a pact concerning data protection is part of this cooperative arrangement. Since establishing a non-U.S. inspection program in 2004, the PCAOB has performed inspections in 44 jurisdictions outside of. Read More.

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Next PCAOB Small Business Forum Set for Thursday

Next PCAOB Small Business Forum Set for Thursday Scheduled for Thursday, the Public Company Accounting Oversight Board (“PCAOB”) will hold its next forum on “Auditing in the Small Business Environment.” Taking place in New York City, the event is part of the PCAOB’s 2014 series on small business forums , and offers PCAOB members and staff the chance to hear comments and questions from auditors. Updated annually, the forum’s agenda shares essential information regarding the PCAOB’s activities with registered accounting firms that audit public companies operating in the small business community. Thursday’s agenda will feature information such as enforcement and U.S. Securities and Exchange Commission updates, the latest on. Read More.

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Standing Advisory Group’s Task Force Shelved

At a Standing Advisory Group (“SAG”) meeting last month, Public Company Accounting Oversight Board (“PCAOB”) Chairman James Doty announced that the Board will no longer pursue creating a task force for identifying accounting fraud. Responding to a question concerning such efforts, Doty remarked that the PCAOB will tackle fraud through a series of outreach efforts. In this approach, Doty believes the issues can be addressed through private discussions in group settings. Originating in November 2012, the task force idea gained traction after SAG members believed it would help improve auditing practices and provide recommendations to the PCAOB. The PCAOB’s staff. Read More.

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Proposed Standard on Audit Partner Disclosure May be Released This Year

Facing opposition from audit firms and lobbying organizations, the Public Company Accounting Oversight Board (“PCAOB”) continues its work on a proposal requiring the client audit’s lead partner to be publicly identified. The proposal, based on Release No. 2013-009, Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits, is considered beneficial by informing investors the name of the partner who completes the audit when they approve a company’s auditor choice during proxy season. From an investor’s standpoint, the public disclosure increases accountability, encourages auditors to be more careful with their auditing process and lowers the possibility of. Read More.

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Revised Proposal to Focus on Auditor Reporting Changes

The Public Company Accounting Oversight Board’s (“PCAOB”; “the Board”) staff is working on a revised proposal that reflects changes to the auditor’s reporting model. Based on Release No. 2013-005, Proposed Auditing Standards on the Auditor’s Report and The Auditor’s Responsibilities Regarding Other Information and Related Amendments, the updated proposal will make available additional information on audit reports for investors. Despite investors praising the change, public organizations and accounting firms believe the new disclosure requirement will expose private company matters that should be kept confidential. In their opinion, management should be accountable for divulging such information, not auditors. Over the past few. Read More.

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SEC & PCAOB Discuss Audit Committee Disclosures

Uncertain how to complete its audit report requirement of disclosing an audit firm’s lead partner on a client engagement, the Public Company Accounting Oversight Board’s (“PCAOB”; “the Board”) project may no longer be needed if the U.S. Securities and Exchange Commission (“SEC”; “the Commission”) decides to make it a requirement to disclose the name in the proxy statement. Investors continue to support the requirement for the lead partner to sign their name on the audit report as established in PCAOB’s Concept Release No. 2009-005, Requiring the Engagement Partner to Sign the Audit Report. Many believe the lead partner’s signature influence. Read More.

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