PCAOB

Community News

SEC, PCAOB Offer FAQs on Auditing Standard No. 2

The Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) have released two sets of frequently asked questions to help practitioners implement the new auditing standard approved by the SEC this week.Auditing Standard No.

How Sarbanes-Oxley Affects Merger Considerations

Two attorneys analyze the ways in which the law could impact companies' merger activity - including internal control issues and public company deals for private firms. For the better part of two years, financial executives have been inundated with analyses of the corporate governance and public reporting requirements of The Sarbanes-Oxley Act of 2002 and related corporate governance reforms.

SEC Approves PCAOB Auditing Standard No. 2

The Public Company Accounting Oversight Board (PCAOB) announced that its Auditing Standard No. 2, "An Audit of Internal Control over Financial Reporting Performed in Conjunction with an Audit of Financial Statements," has been approved by the Securities and Exchange Commission (SEC). The PCAOB expects to publish staff guidance regarding implementation of the standard. “This standard is one of the most important and far-reaching auditing standards the Board will ever adopt,” said PCAOB Chairman William J. McDonough.

Board Announces First Standing Advisory Group Meeting

The Public Company Accounting Oversight Board (PCAOB) announced on Thursday that it has scheduled the first meeting of its Standing Advisory Group for June 21 and 22 to review existing auditing standards and to discuss potential future standards. The group will meet each day from 8:30 a.m. to 5:30 p.m. in the Atrium Hall of the Ronald Reagan Building, 1300 Pennsylvania Avenue, N.W., in Washington, D.C. Among the items to be considered by the advisory group during the meeting are prioritization and review of existing auditing standards.
Community News

PCAOB Adopts Rules For Foreign Audit Firms, Extends July Deadline

On Wednesday, the Public Company Accounting Oversight Board (PCAOB) voted unanimously to adopt its third auditing standard along with rules related to the oversight of non-U.S. firms and certain terminology.The Board adopted Auditing Standard No. 3, Audit Documentation, and a related amendment to an interim auditing standard, which establishes general requirements for documentation an auditor should prepare and retain in connection with engagements conducted pursuant to the standards of the PCAOB.

PCAOB Consider Adopting Audit Documentation Standards, Rules for Oversight of Non-U.S. Firms

Last week the Public Company Accounting Oversight Board scheduled an open meeting for 10:00 a.m. Wednesday, June 9, in the Board’s 8th floor meeting room, 1666 K Street N.W., in Washington, DC. The Board is scheduled to consider:Adopting an auditing standard that would establish general requirements for documentation the auditor should prepare and retain in connection with engagements conducted pursuant to the standards of the PCAOB.
A&A

Survey Finds SOX Compliance Making Some Companies Consider Going Private

The rising and unpredictable costs of complying with the Sarbanes-Oxley Act is causing some companies to consider going private to avoid being forced to adhere to the law’s provisions, CFO.com reported.What some had thought would be one-time costs are turning out to be accelerating costs, according to a study from Foley & Lardner, which found that 21 percent of the companies surveyed are considering going private.Smaller companies are particularly struggling with compliance with 85 companies with annual revenue below $1 billion (out of the 115 companies that responded to the survey), s

PCAOB Auditing Standard No. 1 Effective May 24

The Public Company Accounting Oversight Board announced that its Auditing Standard No. 1, References in Auditors' Reports to the Standards of the PCAOB, has been approved by the U.S. Securities and Exchange Commission. PCAOB Auditing Standard No. 1 requires that auditors' reports on audits and other engagements relating to public companies and other issuers include a reference that the engagement was performed in accordance with the standards of the PCAOB. This replaces the previous reference to generally accepted auditing standards.

GAO Recommends Twelve Actions For Exchange Listing Standards

Investors need timely and ongoing information on the listing status of issuers for use in making investment decisions.
Community News

Arizona Firm Fails PCAOB Inspection

The Public Company Accounting Oversight Board (PCAOB), created by the Sarbanes-Oxley Act of 2002, has rejected an Arizona audit firm’s application to audit publicly traded companies, the Washington Post reported.As part of its charge to clean up the accounting industry after a spate of scandals rocked the profession, the PCAOB conducts regular inspections of firms that audit public companies. James C.
Community News

PCAOB Begins Inspections, Partner Pay to be Checked

The Public Company Accounting Oversight Board has begun inspecting America’s top eight accounting firms and its chairman put partners on notice that their compensation packages will be scrutinized.Speaking before the a Practising Law Institute conference in Washington this week, PCAOB Chairman William McDonough said the board has begun work on the inspections of the top eight firms. The PCAOB has about 80 experienced auditors working on the inspections, which he said will include partner compensation.
Community News

Achieving Corporate Ethics Standards a Gradual, Deliberate Process Within U.S. Companies

Newly released research from Deloitte & Touche LLP, finds that while most companies have taken the initial steps toward establishing a code of ethics, a limited number are actively monitoring adherence to the programs. In a detailed questionnaire sent to 5,000 directors of the top 4,000 publicly traded companies, Deloitte determined that 83 percent of the firms responding have established formal codes of ethics and conduct, but 25 percent are not actively monitoring compliance.Further slippage can be seen in the allocation of resources to ethics activities.

Meeting New Whistleblower Reporting Requirements; Complying With Section 301 of the SOX

The latest edition of The Bulletin, Protiviti Inc.'s corporate governance and risk management newsletter, examines strategies for complying with Section 301 of the Sarbanes-Oxley Act, often referred to as the "whistleblower provision." Protiviti is a leading provider of business and technology risk consulting and internal audit services.Section 301 of Sarbanes-Oxley calls for companies to have systems in place for receiving and handling confidential reports of questionable accounting or auditing practices.

PCAOB Names Advisory Group

The Public Company Accounting Oversight Board today announced the formation of a Standing Advisory Group to assist the Board in carrying out its standards-setting responsibilities. “The Standing Advisory Group will bring a multi-disciplined perspective to the Board’s process of setting auditing standards,” said Board Chairman William J. McDonough.

Tough Rules for Private Entities Could Burden Small CPA Firms

CPAs at small firms are worried about proposals to extend the tough rules of the Sarbanes-Oxley Act to private and nonprofit entities.A task force of the AICPA is studying the matter, and more than 20 states are considering more stringent requirements.Allan Koltin, president of PDI Global Inc., said that small CPA firms "are incensed that they may have to hold the bag because of mistakes the biggest firms made with such audits as Enron, WorldCom and Adelphia." "The small guy is going to suffer greatly for the sins of the big guys," Koltin told Bloomberg columnist Lee Berton.

SEC Publishes Notice of PCAOB Standard on Wording in Audit Reports

The Securities and Exchange Commission this week published a notice soliciting public comments on Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 1, entitled "References in Auditors' Reports to the Standards of the Public Company Accounting Oversight Board." If approved by the Commission, Auditing Standard No.
Community News

PCAOB Names Director of Investigations and Enforcement

The Public Company Accounting Oversight Board announced this week that Claudius B. Modesti will join the Board's staff as its Director of Investigations and Enforcement, effective May 3, 2004. Mr. Modesti, 39, currently is an Assistant United States Attorney for the United States Attorney's office for the Eastern District of Virginia where he has led the investigation and prosecution of white-collar crimes with an emphasis on securities fraud. He was also appointed corporate fraud coordinator for the office.

PCAOB Creates Office of Internal Oversight & Performance Assurance

The Public Company Accounting Oversight Board announced this week the creation of the Office of Internal Oversight and Performance Assurance. The staff of the office will perform internal reviews of the programs and operations of the PCAOB to help ensure their efficiency, integrity and effectiveness.The Board has named Peter Schleck, a former senior advisor to the inspector general of the U.S. Department of Energy, as director of the office and Fred Doggett as deputy director.Mr.
Community News

EU Proposes New Accounting/Auditing Reform Package in Wake of Scandals

In the United States, it’s Enron. In Europe it’s Ahold and Parmalat. The company names are now synonymous with scandal and all three have spurred wide-scale reforms designed to keep it from happening again.Yesterday, the European Commission proposed stricter auditing standards in the fight against the corporate scandals that are now affecting Europe, after blowing up here in 2001 and 2002. The U.S. took steps to reign in the accounting profession in 2002 with passage of the Sarbanes-Oxley Act, which among other things created the Public Company Accounting Oversight Board.The U.S.

Board Approves Internal Control Rule, Confirms Registration Deadline for Non-U.S. Firms

The Public Company Accounting Oversight Board today approved an auditing standard for audits of internal control over financial reporting and proposed amendments to the Board’s existing interim auditing standards to conform them to the new standard. The Board also voted to change the registration deadline for non-U.S. accounting firms from the previous deadline of April 19 to July 19, 2004.

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