PCAOB seeks feedback in first-of-kind standard review

Post-implementation assessment asks how well AS 7 has worked.

In the first review of its kind, the PCAOB Center for Economic Analysis is requesting public comment on a PCAOB standard that requires an engagement quality reviewer to evaluate the significant judgments made by the engagement team.

The analysis of Auditing Standard (AS) No. 7, Engagement Quality Review, represents the start of a post-implementation review program whose goal is to evaluate whether adopted rules and standards are accomplishing their intended purposes. The program also seeks to identify unintended consequences and gauge the overall effects of PCAOB rules and standards.

AS 7 was adopted in 2009, replacing an auditing standard that had been in place since the 1970s. The PCAOB expected the standard to provide a meaningful check on the work performed by engagement teams and increase the likelihood that registered firms would identify significant engagement deficiencies before issuing an audit report.

The PCAOB Center for Economic Analysis is seeking comment by July 5 on the standard's effects.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.