The PCAOB’s proposed changes to the auditor’s reporting model are on track to be issued for public comment in the third quarter of 2012, according to a standard-setting agenda the board released Monday.
PCAOB Chairman James Doty said in December that he thought the proposal would be out by the second quarter. The standard-setting agenda also lists the second quarter of 2013 as the target for the final auditor’s reporting model standard, or a reproposed standard for further public comment.
The agenda includes a disclaimer that says the “project milestone” dates described have been developed for planning and budgeting purposes and might change for a variety of reasons. The agenda gives such milestone dates for 16 projects.
Recommended by the Advisory Committee on the Auditing Profession to the U.S. Department of the Treasury, the auditor’s reporting model project was presented for public comment in a concept release on June 21, 2011. The PCAOB staff has analyzed comments on that release and is drafting a proposed standard for public comment.
The concept release presented several alternatives for changing the reporting model, exploring ways for reports to expand communication about audits and companies’ financial statements.
The agenda includes these targets for other key projects:
- Public meetings on auditor independence and audit firm rotation in the second, third, and fourth quarters of this year. Last week, the PCAOB held two days of public hearings on the issue in Washington.
- Adoption of a final standard on communications with audit committees in the second quarter of 2012.
- Issuance of a proposal for public comment in the third quarter of 2012 for potential revisions to the going concern auditing standard.
- Adoption of a final standard or re-proposal for public comment in the second quarter of 2012 on attestation standards and audits of supplemental information in audits of brokers and dealers.
—Ken Tysiac ( firstname.lastname@example.org ) is a JofA senior editor.
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