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
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TOPICS / AUDIT & ASSURANCE
Audit
PCAOB reopens comment period on audit firm rotation concept release
The PCAOB has reopened its comment period regarding a debated concept release on auditor independence and audit firm rotation. The original comment period closed Dec. 14. The new deadline is April 22, the PCAOB said Wednesday. The board extended the deadline to incorporate comments following a March 21–22 public meeting
PCAOB outlines related parties proposal, other amendments
The PCAOB on Tuesday issued for public comment a proposed auditing standard on related parties and proposed amendments on significant unusual transactions. The board said the proposals are designed to improve auditors’ focus on certain areas of risk. In addition, the PCAOB proposed amendments to its rules and forms to
ASB issues clarified SAS
The AICPA’s Auditing Standards Board issued Statement on Auditing Standards (SAS) no. 125, Alert That Restricts the Use of the Auditor’s Written Communication. The SAS, which is part of its Clarity Project, supersedes SAS no. 87, Restricting the Use of an Auditor’s Report (AICPA, Professional Standards, AU sec. 532 and
PCAOB Reproposes Standard on Communications with Audit Committees
The PCAOB on Tuesday reproposed for comment an audit standard, Communications with Audit Committees, and related amendments to PCAOB standards. Initially, the standard was proposed on March 29, 2010. According to a PCAOB news release, the reproposed standard is designed to align communications requirements with performance demands in other PCAOB
New Auditors’ Reporting Model Proposal Set for Release in Q2
The PCAOB’s proposal for a new auditors’ reporting model should be completed by the second quarter of 2012, PCAOB Chairman James Doty said Monday. Speaking at the AICPA’s National Conference on Current SEC and PCAOB Developments in Washington, Doty gave an update on the PCAOB’s initiative on the form and
Auditing
The PCAOB published a Staff Audit Practice Alert to increase auditors’ awareness of risks when performing audits of companies with operations in emerging markets. Specifically, the alert cited a number of reports originating from audits of companies based in the People’s Republic of China. Staff Audit Practice Alert no.
European Commission Proposes Regulatory Changes for Audits
The European Commission today proposed sweeping regulations that would, if approved, trigger major changes in the relationships between European public companies and their auditors. The changes include: Limiting to six years the period that an outside auditing firm can perform audits for a company. A cooling-off period of four years
Auditing
AICPA staff issued TPA 9160.27, “Providing Opinion on a Schedule of Expenditures of Federal Awards [SEFA] in Relation to an Entity’s Financial Statements as a Whole When the Schedule of Expenditures of Federal Awards Is on a Different Basis of Accounting Than the Financial Statements.” Provided certain conditions are
ASB Reaches Major Clarity Project Milestone
The AICPA’s Auditing Standards Board has achieved a major milestone in its Clarity Project with the issuance of Statement on Auditing Standards (SAS) nos. 122–124. The publication includes a total of 40 finalized clarified SASs in the following statements: SAS no. 122, Statements on Auditing Standards: Clarification and Recodification SAS
PCAOB Round Table to Address Auditor’s Reporting Model
The PCAOB said it will host a public round table on Thursday, Sept. 15, to discuss its concept release on possible changes to the auditor’s reporting model. The board issued a discussion paper for the meeting. The board said in a press release that the purpose of the meeting is
Last Chance to Offer ASB Input on Strategic Plan
The AICPA’s Auditing Standards Board is developing its strategic plan for the next three to four years. The board has launched a survey that will remain open until today to collect views from constituents regarding what the ASB’s objectives and activities should be during that period. The survey is an
ASB Issues Interpretation to SAS 119, Three Clarified SASs
The AICPA’s Auditing Standards Board (ASB) issued Interpretation no. 1, “Dating the Auditor’s Report on Supplementary Information,” to SAS no. 119, Supplementary Information in Relation to the Financial Statements as a Whole. The ASB also issued three clarified Statements on Auditing Standards (SASs). The interpretation to SAS no. 119 addresses
Auditing
The PCAOB issued a concept release on possible changes to the auditor’s reporting model including the addition of an auditor’s discussion and analysis (AD&A), mandatory emphasis paragraphs, assurance on non-GAAP information and clarification of standard language. A fact sheet summarizing each of the possible changes is available at tinyurl.com/679h8ku.
IAASB Chair: 70-Plus Countries Now Endorse Clarity ISAs
In the past year, the number of countries using or committed to using the Clarity International Standards on Auditing (ISAs) has grown from about 30 to more than 70, according to Arnold Schilder, chairman of the International Auditing and Assurance Standards Board (IAASB). Speaking at the CReCER 2011 financial reporting
ASB Seeking Feedback on U.S. Auditor Reporting
The AICPA Auditing Standards Board (ASB) is requesting input from members and other stakeholders to help form its comments on the consultation paper, Enhancing the Value of Auditor Reporting: Exploring Options for Change (Consultation Paper), issued by the International Auditing and Assurance Standards Board. The IAASB paper is aimed at
PCAOB Set to Expand Under New Mandates
PCAOB Chairman James R. Doty sees the audit profession as being at a turning point, not just in the U.S., but globally. “One of the fundamental advantages of our society has always been the audit. We believed we could believe in the numbers and that the numbers would be right.
Expanding Service Organization Controls Reporting
Several prominent internal control breakdowns and increased focus on internal control by regulators, boards of directors and others charged with governance have led to increased demand for attestation reports on controls over subject matter other than financial reporting provided by an independent CPA. Neither Statement on Auditing Standards (SAS) no.
PCAOB Considers Four Approaches to Changing Auditor’s Report
The PCAOB issued a concept release Tuesday on possible changes to the auditor’s reporting model including the addition of an auditor’s discussion and analysis (AD&A), mandatory emphasis paragraphs, assurance on non-GAAP information and clarification of standard language. A fact sheet issued with the release summarizes each of the possible changes.
Clarified Auditing Standards: The Quiet Revolution
Over the past few years, much attention has been paid to the issue of global harmonization of generally accepted accounting principles while, at the same time, a much quieter revolution has been taking place in generally accepted auditing standards (GAAS). Over the past seven years (see sidebar, “Timeline of Clarification
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As AI use accelerates, many firms are discovering their policies haven’t kept pace. This article breaks down what CPAs and finance leaders should consider when drafting an AI policy that’s practical, flexible, and fit for real world use.
