PCAOB requests comments on auditing accounting estimates and fair value measurements

BY KEN TYSIAC

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.

SPONSORED REPORT

How the election may affect taxation of business income

This report summarizes recent proposals to reform the U.S. business income tax system and considers the path to enactment of any such legislation.

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

Did you follow 2016’s biggest accounting news?

CPAs will remember 2016 as a year of new standards and new faces. How well did you follow the biggest accounting events? The 7 questions in this quiz will help you find out