PCAOB PROPOSES RULES ON AUDIT COMMUNICATIONS

The Public Company Accounting Oversight Board has proposed an auditing standard on communications with audit committees, and a series of related amendments to interim standards.

The proposal addresses requirements for auditors to communicate with the audit committees of public company boards, and considers a number of factors, including the importance of accounting judgments and estimates in financial reporting. It also includes a requirement for auditors to establish a mutual understanding of the terms of the audit engagement with the audit committee and to document that understanding in an engagement letter.

It also includes requirements regarding:

* Communication of an overview of the audit strategy, including a discussion of significant risks; the use of the internal audit function; and the roles, responsibilities and location of firms participating in the audit;

* Communication regarding critical accounting polices, practices and estimates;

* Communication regarding the auditor's evaluation of a company's ability to continue as a going concern; and,

* Evaluation by the auditor of the adequacy of the two-way communications.

Comments on the proposed standard and amendments are due by May 27, 2010. For more, visit www.pcaobus.org.

CHIEF ACCOUNTANT NAMED AT SEC ENFORCEMENT UNIT

Washington, D.C. - The Securities and Exchange Commission has appointed Howard A. Scheck chief accountant in the Division of Enforcement. Scheck rejoins the SEC staff from Deloitte Financial Advisory Services, where he was a partner in the forensic and dispute consulting practice. He previously worked at the SEC for 10 years, including as a branch chief in Enforcement. Scheck was expected to begin in his new position in mid-April.

The previous chief accountant in Enforcement, Susan G. Markel, left in January 2009 to become a managing director in the corporate investigations practice of business advisory firm AlixPartners.

Register or login for access to this item and much more

All Accounting Today content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access