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.

VIDEO

Excel walk-through: Sparklines

Want to liven up your spreadsheets with some color and graphical elements? Kelly L. Williams, CPA, Ph.D., shows how to use Excel sparklines, which illustrate data trends and patterns via small charts that fit in a single Excel cell.

PODCAST

What’s next for potential CPA licensure changes

A new model proposed by NASBA and the AICPA is designed with an eye on the future for newly licensed CPAs. The AICPA's Carl Mayes, CPA, provides background on the project and a look ahead to 2020.