The Public Company Accounting Oversight Board is considering proposing new requirements for an auditor’s use of other auditors.
The PCAOB plans to hold an open meeting next Tuesday, April 12, starting at 10:00 AM in its offices in Washington, D.C., to discuss the matter. The new requirements would apply to audits that involve accounting firms or accountants outside the firm issuing the audit report.
In many audits, the PCAOB pointed out, important audit work is performed by accounting firms or individual accountants outside the firm issuing the audit report. The proposal would address the lead auditor's responsibilities with respect to those other auditors that participate in the audit.
“We are developing a new standard on the lead auditor's procedures for using the work of other auditors,” said PCAOB Chairman James Doty during remarks last month at a meeting with the Securities and Exchange Commission to approve the PCAOB’s budget. “These procedures will be particularly important to achieving consistent quality in large, multinational audits in which significant parts of the audit are conducted by firms other than the signing firm. Working closely with your staff, we hope to be in a position to issue a proposal in the next few weeks.”
The meeting is open to the public and will take place in the PCAOB’s meeting room at 1666 K Street NW, Washington, D.C. A live webcast via a link on the PCAOB website will be made available the day of the meeting and available in the archive the next day.
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