News Highlights for June 2010


The PCAOB proposed for comment an auditing standard, Communications with Audit Committees, and a series of related amendments to its interim standards.

 

The proposal includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to document that understanding in an engagement letter.

 

It also includes requirements relating to:

 

  • Communication of an overview of the audit strategy, including a discussion
  • of significant risks, the use of the internal audit function; and the roles, responsibilities
  • and location of firms participating in the audit.
  • Communication regarding critical accounting policies, practices and estimates.
  • Communication regarding the auditor’s evaluation of a company’s ability to
  • continue as a going concern.
  • Evaluation by the auditor of the adequacy of the two-way communications.

 

The proposed auditing standard would supersede PCAOB interim standard AU section 380, Communication With Audit Committees, and AU section 310, Appointment of the Independent Auditor, and amend a number of other interim standards. If adopted by the PCAOB, the standard would be submitted to the SEC for approval.

 

The comment period ended May 28.

 

More from the JofA:

 

 Find us on Facebook      Follow us on Twitter

 

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.