PCAOB to initiate broad discussion of issues relating to auditor independence

The Public Company Accounting Oversight Board (PCAOB) is conducting an open meeting at its headquarters in Washington DC, on Tuesday, August 16, to consider a concept release on ways that auditor independence, objectivity, and professional skepticism could be enhanced, including mandatory audit firm rotation. The concept release will solicit public comment.
James R. Doty, Chairman of the PCAOB, in a speech delivered to the Securities and Exchange Commission and the Financial Reporting Institute on June 2 said that the "PCAOB expects to issue several policy documents in the near-term. The objective is to foster broad debate and research about ways to enhance both the relevance and credibility of audits, and to provide the investing public a better understanding of what an audit is through enhanced transparency."
Doty said that the board plans on "long comment periods to allow for evidence-gathering and research."
The first of the PCAOB's policy documents, the Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements, was issued by the board on June 21.
In his speech, Doty also referred to a related July 2009 concept release that sought comments on whether the board should require engagement partners to sign audit reports. He said that the board was now working "to articulate an approach that would retain the substance of the benefits discussed while addressing legitimate concerns."
Related items:


You may like these other stories...

IRS audits less than 1 percent of big partnershipsAccording to an April 17 report from the Government Accountability Office (GAO), the IRS audits fewer than 1 percent of large business partnerships, Stephen Ohlemacher of the...
Is it time to consider a value added tax?Forbes contributor Joseph Thorndike wrote yesterday that he believes the tax reform proposal by House Ways and Means Committee Chairman Dave Camp (R-MI) was dead on arrival. But he...
Read more from Larry Perry here and in the Today's World of Audits archive.The planning phase of an audit engagement of an entity using US GAAP or a special purpose framework will, with minor differences, include similar...

Upcoming CPE Webinars

Apr 22
Is everyone at your organization meeting your client service expectations? Let client service expert, Kristen Rampe, CPA help you establish a reputation of top-tier service in every facet of your firm during this one hour webinar.
Apr 24
In this session Excel expert David Ringstrom, CPA introduces you to a powerful but underutilized macro feature in Excel.
Apr 25
This material focuses on the principles of accounting for non-profit organizations' revenues. It will include discussions of revenue recognition for cash and non-cash contributions as well as other revenues commonly received by non-profit organizations.
Apr 30
During the second session of a four-part series on Individual Leadership, the focus will be on time management- a critical success factor for effective leadership. Each person has 24 hours of time to spend each day; the key is making wise investments and knowing what investments yield the greatest return.