Delivering insights to financial reporting professionals. The SEC has approved final standards issued by the PCAOB giving auditors new requirements for auditing estimates and relying on the work of specialists. Related Amendments to PCAOB Auditing Standards . While deleting areas of importance to investors, the remaining items on the agendas overlap with the priorities of an international standard setter. Revisions to the PCAOB’s project agendas should only be made after adequate public engagement with investors, including public meetings of our advisory groups. It will provide an overview of the rulemaking on auditing estimates and highlight aspects of the new requirements. Proposals by other standard setters are important and can be useful sources of input. Professional Standards Technical Practice Aids Trust Services Principles, Criteria, and Illustrations Principles and Criteria for XBRL-Formatted Information New Technical Questions and Answers Audit and Accounting Guides & Audit Risk Alerts Accounting Trends and Techniques Practice Aids New SASs, SSAEs, and SSARSs AICPA Issues Papers The new standard for auditing accounting estimates, including fair value measurements, differs from the current requirements in several important ways. “As business changes in certain companies, [and there are] changes in company processes and controls, including IT controls, perhaps new … Why did the PCAOB adopt the new standards? 1/Effective April 16, 2003, the PCAOB adopted, on an initial, transitional basis, five temporary interim standards rules (PCAOB Rules 3200T, 3300T, 3400T, 3500T, and 3600T) that refer to pre-existing professional standards of auditing, Among other things, the standard: 1. 034, Section III, "Overview of the Final Standard." The Public Company Accounting Oversight Board voted Thursday to adopt a set of amendments to its auditor independence standards to align them with the Securities and Exchange Commission’s revised rules that loosen some of the requirements.. September 05, 2019. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. On November 20, the PCAOB announced the swearing in of Megan Zietsman, the board’s chief auditor and director of professional standards since early 2019, as a board member. The November 2020 document, “Spotlight: The PCAOB’s Use of Economic Analysis and Stakeholder Input in Standard Setting,” outlines how the board conducts economic analysis and gets stakeholder input before and after new standards go into effect. As for innovative oversight, the revised agendas mostly leave in place the remaining legacy standards adopted by the PCAOB on an “interim” basis in 2003. The new guidance impacts the work that audit teams must perform when auditing accounting estimates. Our revised agendas, however, do not even hint at this need, much less suggest a timetable for doing so. IAASB Welcomes PCAOB's New Enhanced Auditor Reporting Standard ( 1 August 2017) The IAASB welcomes the PCAOB's adoption of a new auditor reporting standard. The guide contains marked text illustrations of the amendments in Release 2020-003, Amendments to PCAOB Interim Independence Standards and PCAOB Rules to Align with Amendments to Rule 2-01 of Regulation S-X , published on November 19. Her term will run through October 2025. The first, Auditing Accounting Estimates, will run from 1:00-2:15 pm ET. The Public Company Accounting Oversight Board today adopted a new auditing standard and amendments to other auditing standards to strengthen auditor performance requirements in three critical areas of the audit: related party transactions, significant unusual transactions, and a company's financial relationships and transactions with its executive officers. Certainly, a systematic re-evaluation of these interim standards would be a sizeable and time-intensive project. In 2018, we issued a Strategic Plan that promised innovative oversight, including with respect to our approach to writing auditing standards. “The proposed standard includes specific requirements related to current developments not addressed in PCAOB standards,” he said during an auditing conference in New York last December . The Public Company Accounting Oversight Board is proposing a new auditing standard that relates to the auditor’s evaluation of a company’s relationships and transactions with related parties, and amendments to existing auditing standards that relate to significant unusual transactions and financial relationships and transactions by a company with its executive officers (including incentive … The new and amended standards strengthen the requirements for auditing management’s accounting estimates and the auditor’s use of the work of specialists, including company specialists. The Concept Release, however, suggested that the objective of a system of quality control could be to “provide a firm with reasonable assurance that its personnel comply with professional standards applicable to its accounting and auditing practice and the firm’s standards of quality.” In other words, the revised standards could have as an objective compliance with our existing outdated auditing standards. Often the input came through public meetings of the PCAOB’s two advisory groups. PCAOB News Former PCAOB Chief Auditor Megan Zietsman Sworn in to Board. The PCAOB has therefore decided to amend its interim independence standards to avoid inconsistent auditor independence requirements on lending arrangements, in an effort to clarify an auditor’s independence obligations and facilitate compliance with Rule 2-01. With respect to the September 2020 revised agendas, there have been no public meetings of our advisory groups to discuss these changes or any other standard-setting matters. This publication has been developed to illustrate the key similarities and differences between the IAASB’s . On November 20, the PCAOB announced the swearing in of Megan Zietsman, the board’s chief auditor and director of professional standards since early 2019, as a board member. 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