August 16, 2012
PCAOB Adopts Auditing Standard No. 16, Communications with Audit Committees
On the heels of its informational release regarding auditors and PCAOB inspection reports, the PCAOB adopted Auditing Standard No. 16, Communications with Audit Committees yesterday to improve communications between auditors and audit committees. There is no new audit work required.
As FEI’s “Financial Reporting Blog” noted, PCAOB Chair Jim Doty stated during the open Board meeting:
“Indeed, in my own experience as a counselor to boards, many an audit committee has wondered, with regret, why didn’t the auditors tell us about this?”
The standard is subject to SEC approval and, if approved, would be effective for audits of fiscal periods beginning after December 15, 2012. Note this is the first auditing standard adopted by the PCAOB subsequent to the JOBS Act – and therefore, the SEC must separately determine whether it will apply to audits of emerging growth companies (as noted by Cooley’s Cydney Posner in this news brief).
Congressional Pressure Ahead of the SEC’s Open Commission Meeting Next Week
Next week, Dave will be manning the blog while I am on vaca. So he’ll get to enjoy the fireworks during the SEC’s August 22nd open Commission meeting. Jim Hamilton blogs about this letter to the SEC from three Senators about those proceedings…
The Second Deal Cube Tourney: Round One; 2nd Match
As noted in these rules (and keep sending more pics for the next tourney), please vote for two of the following four cubes below:
– Shopping Cart Filled with Product
– Bride in Cabinet
– Crane & Windmill Generators
– Standard
– Broc Romanek