AICPA Proposes New Audit Standard
An exposure draft for a proposed standard just issued by the American Institute of Certified Public Accountants’ Auditing Standards Board focuses on improving communication between independent auditors and corporate audit committees.
The draft is called Amendments to Statement on Auditing Standards No. 61, “Communication With Audit Committees, “ and Statement on Auditing Standards No. 71, “Interim Financial Information.”
Auditors auditing public companies for fiscal years beginning with 2000 would be required to talk with management and the audit committee about the quality of the client’s accounting principles. This would be in addition to current practice where auditors discuss acceptability.
The proposed standard is the result of a combined effort between the Auditing Standards Board, the New York Stock Exchange, the National Association of Security Dealers and the SEC. Comments are due on the exposure draft (downloadable here with Adobe Acrobat reader) by November 30, 1999.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.