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AUDITING

PCAOB requests comments on auditing accounting estimates and fair value measurements

 

By Ken Tysiac
August 19, 2014

The PCAOB is seeking input as it weighs possible standard-setting activities related to auditing accounting estimates and fair value measurements.

In a staff consultation paper released Tuesday, the PCAOB Office of the Chief Auditor seeks comments on the potential need for changes to PCAOB standards—and a possible approach to a new auditing standard.

“Accounting estimates and fair value measurements can be subjective and complex, yet they can be an important part of a company’s financial statements and critical to investors’ decision-making,” PCAOB Chairman James Doty said in a news release. “The PCAOB and foreign audit regulators have identified compliance with auditing requirements related to fair value measurements as an area of continued concern, and I support the staff’s outreach efforts in this important area.”

The consultation paper describes the staff’s preliminary views as a possible approach to changing the PCAOB’s standards and seeks other views on that approach.

Comments are sought by Nov. 3 and can be submitted to comments@pcaobus.org.

The PCAOB also will hold a Standing Advisory Group meeting on Oct. 2 in Washington to discuss matters related to auditing accounting estimates and fair value measurements.

Ken Tysiac (ktysiac@aicpa.org) is a JofA editorial director.

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