Decision Expected Soon by PCAOB on the Reorganization of Auditing Standardsby
A decision to adopt a reorganization of US auditing standards is expected to be made early next week by the Public Company Accounting Oversight Board (PCAOB).
Board members will likely vote on the proposed standards restructuring during an open PCAOB meeting on March 31, which will begin at 9:30 a.m. Eastern time.
According to the PCAOB, two types of authoritative auditing standards currently exist:
- Standards originally issued by the American Institute of CPAs Auditing Standards Board and adopted by the PCAOB on an interim, transitional basis in April 2003.
- Standards issued by the PCAOB.
The reorganization is intended to present both types of guidance in a logical order that generally follows the flow of an audit, which should help auditors navigate the standards more easily.
The PCAOB issued its original proposal to reorganize the existing interim and PCAOB-issued standards in March 2013. Under a proposed framework, the standards would be incorporated 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 last May. “Helping auditors better navigate PCAOB standards could, in turn, facilitate better compliance with the standards.”
The PCAOB sought the public’s input on the reorganization during a 60-day comment period last year.
Tuesday’s meeting is open to the public and will take place in the board’s meeting room at 1666 K St. NW, Washington, DC. A webcast via a link on the PCAOB website will be made available the day of the meeting. The meeting also will be available via podcast later in the day.