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The ASB issues a proposed statement on auditing standards titled Sarbanes-Oxley Omnibus Statement on Auditing Standards. Among other things, the omnibus statement includes a proposed SAS, Review of Public Company Audits by a Reviewing Partner, which requires such partners to review the audits of public companies’ financial statements, internal controls and interim financial information. The exposure draft also proposes amendments to AU section 339, “Audit Documentation,” and AU section 722, “Interim Financial Information” (of AICPA, Professional Standards ), to reflect Sarbanes-Oxley and SEC record retention requirements. Further, the ED amends several other AU sections including 310, “Appointment of the Independent Auditor”; 316, “Consideration of Fraud in a Financial Statement Audit”; and 380, “Communication With Audit Committees,” to reflect Sarbanes-Oxley provisions and SEC rulings governing auditors’ responsibilities when communicating with audit committees. Comments on the ED, available at www.aicpa.org/members/div/auditstd/drafts.htm , are due May 15.
Two other exposure drafts from the ASB address internal control issues. One ED consists of two proposed SASs ( Auditing an Entity’s Internal Control Over Financial Reporting in Conjunction With the Financial Statement Audit and Amendment to Statement on Auditing Standards no. 100, Interim Financial Information) and one proposed SSAE ( Reporting on an Entity’s Internal Control Over Financial Reporting ). Comments on it are due May 15. The other ED, Communication of Internal Control Related Matters Noted in an Audit, establishes standards and provides guidance on the auditor’s responsibility to notify the audit committee or its equivalent, such as the board of directors or owner of a private entity, when, during a financial statement audit, the auditor becomes aware of significant deficiencies and material weaknesses in the company’s internal control. Comments are due May 30. CPAs can view both EDs at www.aicpa.org/members/div/auditstd/drafts.htm .