PCAOB Hones Auditing Standard Reorganization Proposal

The Public Company Accounting Oversight Board has issued a supplemental request for comments on its proposal to reorganize the existing PCAOB auditing standards, while also providing an online demonstration of the proposed reorganization, presenting the existing auditing standards as they would look if reorganized according to the proposed framework.

“The proposed reorganization is intended to make PCAOB auditing standards more accessible and easier to navigate,” said PCAOB chairman James R. Doty in a statement. “This supplemental request and demonstration version provide further opportunity for the public to consider and comment on the proposed reorganization.”

The document details the proposed line-by-line amendments to PCAOB auditing standards and rules that are needed to implement the proposed reorganization. In addition, the supplemental request includes certain minor changes to the proposal that was originally issued in March 2013.

In addition, 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. It also features an email link that allows individuals to comment on any aspect of the reorganization while reviewing the demonstration version.

The framework that the PCAOB proposed in March 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 categories: general auditing standards, audit procedures, auditor reporting, matters relating to filings under federal securities laws, and 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,” said PCAOB chief auditor and director of professional standards Martin F. Baumann. “Helping auditors better navigate PCAOB standards could, in turn, facilitate better compliance with the standards.”

The PCAOB has reopened the comment period for 60 days to seek further comment on the matters discussed in the March 2013 proposing release, as well as the implementing amendments in the supplemental request for comment.

Comments may be submitted by postal mail or email, and should be sent to the Office of the Secretary, PCAOB, 1666 K Street NW, Washington, DC 20006, or to comments@pcaobus.org. 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, 2014. All comments will be made public.