If the ideas in the Concept Release move forward to proposed and final rulemaking, they could mark significant changes in the language of the auditor’s report – and, in turn, in the way that audits are conducted.
(Although directed at public company audits, any resultant changes in PCAOB audit standards could also indirectly impact private company audits, to the extent audit firms that service both types of clients move to incorporate one set of standard practices in their audits (and to the extent there is harmony with AICPA requirements for audits of nonpublic companies).
FEI Views on Auditor’s Reporting Model
In a comment letter filed last week, FEI’s Committee on Corporate Reporting provided its views on the PCAOB’s Concept Release on the Auditor’s Reporting Model. Read more in the FEI CCR letter
Next Up: Auditor Independence, Audit Firm Rotation
Staff Alert on Emerging Markets
UPDATE 10/6: Office of Internal Oversight & Performance Assurance (IOPA) Issues Two Reports
On October 5, the PCAOB posted on its website two reports that were recently issued by its office of Internal Oversight and Performance Assurance (IOPA), including the related transmittal letters accompanying the reports; the letters were sent by PCAOB Chairman Jim Doty to SEC Chairman Mary L. Schapiro. The two reports were on the PCAOB's:
- IT Governance and Staffing
- Controls Over Employee Internet Activity