The Public Company Accounting Oversight Board (PCAOB) is planning a reorganization of its auditing standards – and it is asking for the public’s feedback on the proposal.
On Wednesday, the PCAOB issued a supplemental request for comment on the auditing standards reorganization initiative. The board also released on its website an online demonstration version that presents the existing auditing standards as they would look if reorganized according to the proposed framework.
A 60-day comment period has been reopened by the PCAOB, allowing the board to seek additional public input on the standards reorganization, which was first proposed in March 2013, as well as the implementing amendments in the supplemental request for comment. An initial public comment period on the proposal closed in late May of last year.
All comments should refer to Rulemaking Docket Matter No. 040 in the subject or reference line and should be received by the PCAOB no later than 5 p.m. EDT on July 8. All comments will be made public.
The supplemental request details the proposed line-by-line amendments to PCAOB auditing standards and rules that are needed to implement the proposed reorganization. It also includes certain minor changes to the original proposal.
The framework the PCAOB proposed last year would reorganize the existing interim and PCAOB-issued auditing standards into a topical structure with a single integrated numbering system. Among the proposed changes, all PCAOB auditing standards would be grouped into the following five categories:
- General auditing standards
- Audit procedures
- Auditor reporting
- Matters relating to filings under federal securities laws
- Other matters associated with audits
“The implementing amendments do not reflect any substantive changes to PCAOB standards nor do they impose new requirements on auditors,” Martin Baumann, PCAOB chief auditor and director of professional standards, said in a written statement. “Helping auditors better navigate PCAOB standards could, in turn, facilitate better compliance with the standards.”
The online demonstration version includes mapping tools to help users understand the difference between the existing organizational structure of the standards and the proposed new organizational structure, according to the PCAOB. It also features an e-mail link that allows individuals to comment on any aspect of the reorganization while reviewing the demonstration version.