Get ready to send comments on or before 'leap day' (Feb. 29, 2012) on PCAOB's reproposed standard on Communications with Audit Committees. The PCAOB board approved the release of the reproposed standards at an open board meeting this morning
As noted in PCAOB's press release:
Like the original proposal, the reproposed standard would establish requirements that enhance the relevance and quality of the communications between the auditor and the audit committee.
The reproposed standard, in addition, would better align the communication requirements with performance requirements in other PCAOB standards, including the implementation of the risk assessment standards (Auditing Standard Nos. 8-15) that became effective in December 2010. It also would include changes made in response to comments received on the original proposal and other refinements.
Preparers, auditors, audit committee members, board members generally, investors and others should take a look at this proposal and consider filing a comment letter. The comment letter process helps the PCAOB (and other standard-setting organizations like FASB, SEC and quasi-standard setting organizations like COSO - see our post yesterday on COSO's Exposure Draft of its internal control framework) - to issue standards with improved practicality and a stronger theoretical basis.
Watch for the posting of the reproposed standard, and related documents on the PCAOB's website, here and here.