SEC APPROVES ENGAGEMENT REVIEW STANDARD
Washington, D.C. - The Securities and Exchange Commission recently approved a new auditing standard that aims to toughen the requirements for concurring reviews of the work of audit teams.
Auditing Standard No. 7, Engagement Quality Review, expands the existing requirements for concurring reviews, and requires the engagement quality reviewer to evaluate the significant judgments made and related conclusions reached by the engagement team in forming the overall conclusion on the engagement and in preparing the engagement report.
The standard also requires the engagement quality reviewer to perform certain procedures designed to focus the reviewer on those judgments and conclusions, such as holding discussions with the engagement team, reviewing the documentation, and determining whether to provide a concurring approval of issuance.
The new rule is effective for engagement quality reviews of audits and interim reviews for fiscal years that began on or after Dec. 15, 2009. Accordingly, for interim reviews of public companies that file financial reports on a calendar-year basis, the standard is applicable beginning with the quarter ending March 31, 2010.
MOSS ADAMS CHAIR TO LEAD PRIVATE COS. PANEL
Seattle - Rick Anderson, chairman of accounting firm Moss Adams, has been named chairman of a blue ribbon panel that is being set up to address how U.S. accounting standards can best meet the needs of users of private company financial statements.
The new panel, which was announced in December, will be a joint effort of the American Institute of CPAs, the Fin-ancial Accounting Foundation and the National Association of State Boards of Accountancy.
Anderson currently serves on the FAF Board of Trustees. He was a member of the AICPA Council for three years. Other members of the panel have not yet been announced, but the group is expected to represent a cross-section of financial reporting constituencies, including lenders, investors and owners, as well as preparers, auditors and regulators.
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