Auditing


 The SEC approved Auditing Standard no. 7, Engagement Quality Review. The standard is effective for engagement quality reviews of audits and interim reviews for fiscal years that began on or after Dec. 15, 2009.

Accordingly, for interim reviews of public companies that file financial reports on a calendar-year basis, the EQR standard is applicable beginning with the quarter ending March 31, 2010. The PCAOB adopted the new EQR standard on July 28, 2009.

The PCAOB said it plans to publish Staff Questions and Answers on implementation of the standard in the near future.

The SEC order approving the EQR standard is available at sec.gov/rules/pcaob.shtml.

 The PCAOB published two sets of Staff Questions and Answers. One concerns a registered firm’s obligation to report certain events to the board in special reports, and the other one concerns the process through which, in certain circumstances, a firm can succeed to a predecessor firm’s registration status.

Topics addressed in the special report guidance—Form 3—include an overview of the special reporting requirements, a discussion and summary of the events required to be reported, guidance on completing and amending the reporting form, information on requesting confidential treatment and withholding information on the basis of non-U.S. legal restrictions and a discussion of the mechanics of reporting through the PCAOB Web-based system.

It is available at tinyurl.com/yja7wt3.

Topics addressed in the guidance on succession to registration status—Form 4—include a description of the process, the relevant filing deadlines, the process for seeking leave to file an untimely succession form, the relevance of the process to succession events that occurred before Dec. 31, 2009, the circumstances in which firms involved in a transaction leading to succession should and should not withdraw from registration, and the mechanics of filing the relevant form through the PCAOB Web-based system. It is available at tinyurl.com/yln6hyx.

 The PCAOB reporting rules that took effect Dec. 31, 2009, also require all registered firms to file annual reports by June 30 of each year, beginning in 2010, covering the 12-month period ending March 31 of that year. Staff Questions and Answers concerning annual reporting will be published later.

Additional questions concerning these Staff Questions and Answers may be directed to the PCAOB registration staff at registration-help@pcaobus.org.

 The International Auditing and Assurance Standards Board (IAASB) has developed a free question-and-answer publication designed to raise awareness about how XBRL-tagged data is prepared and how it may affect financial reporting.

XBRL: The Emerging Landscape clarifies how XBRL may lead to a demand for various types of assurance and related services engagements, and describes the scope of the IAASB’s planned consultations to determine whether to develop a new international pronouncement addressing XBRL. It is available at tinyurl.com/yhvubj4.

 

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