The Public Company Accounting Oversight Board will hold a two-day session in April to get more feedback on the proposal it made in August 2013 to update the standard audit report. The PCAOB will include investors, investor advocates, senior executives, audit firm representatives, audit committee chairs of major corporations, and academics on the panel, who will present their views on the proposal and field questions from PCAOB members. The Center for Audit Quality, which is affiliated with the AICPA, is currently coordinating a field test on the proposed standard and the results will be available in May.
The Public Company Accounting Oversight Board will consider adoption of new attestation standards for auditors of brokers and dealers. The standards would enable implementation of a recently approved Securities and Exchange Commission rule that requires certain services to be performed by PCAOB-registered public accountants in accordance with PCAOB standards.
Public Company Accounting Oversight Board member Jay Hanson said that estimates and valuations are frequent trouble spots for corporate financial statements and that auditors should adjust their approach accordingly. He noted that financial statements no longer are dominated by tangible assets and historical accounting and thus auditors need to focus on being independent and skeptical.
The Public Company Accounting Oversight Board plans to publish a revised proposed auditing standard dealing with transactions with related parties -- that is, people or entities connected or related to senior management. According to PCAOB Chairman James Doty, related parties have played a role in some of the largest financial failures in recent years.
Taiwan’s top financial regulatory body, the Financial Supervisory Commission, and the U.S. Public Company Accounting Oversight Board signed a statement of protocol meant to improve oversight of auditors who practice in both countries.