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

Time to prepare for overtime changes

As an employer, trusted business adviser, or HR professional, you will need to be aware of exemption guidance, record requirements, advice for clients, and typical problems in applying overtime pay.

QUIZ

News quiz: Good news on pay and benefits for accountants

CPAs can find much to like in recent reports, including news that their expertise and skills are in such demand that pay is expected to rise and that their employers value professional certifications.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.