FAF Votes To Reduce Size of FASB Board; PCAOB Proposes Tightening of Engagement Quality Review

By Edith Orenstein, FEI Financial Reporting Blog - Two big news items today (Feb. 26): the Financial Accounting Foundation (FAF), parent of the FASB, announced the FAF Trustees voted to reduce the size of the FASB board from seven members to five, effective July 1, 2008, and approved other changes to the FAF, FASB and GASB’s structure and governance. Separately, the PCAOB voted to release a proposed auditing standard for Engagement Quality Review (EQR) – also called concurring or second partner review – which will tighten the current standards for EQR. Further details, including a comparison of FAF's vote vs. its earlier proposal, and highlights from discussion at PCAOB's open board meeting discussing the EQR proposal, can be found here.

Posted by Edith Orenstein, FEI Financial Reporting Blog, Feb. 26, 2008 6:06 pm