PCAOB Proposed AS Related to Confiramtions and Related Amendments

If you or your firm audit public companies then you'll be interested in the PCAOB's latest proposed Auditing Standard. The PCAOB released Proposed Auditing Standard Related to Confirmation and Related Amendments to PCAOB Standards on July 13, 2010. The comment period ends September 13, 2010.

The proposed auditing standard, Confirmation,

• Supersedes the Board's standard, AU section 330, The Confirmation Process, and related amendments to the Board's auditing standards.
• Is applicable to all registered firms conducting audits in accordance with PCAOB standards.

The new standard:

• Requires confirmation procedures for specific accounts.
• Incorporates procedures in response to risk of material misstatement.
• Updates the standard to reflect significant advances in technology.
• Defines a confirmation response to include electronic or other medium.
• Enhances requirements when confirmation responses include disclaimers and restrictive language.

In drafting the proposed standard the Board considered International Standard on Auditing (ISA) 505, External Confirmations, issued by the International Auditing and Assurance Standards Board (IAASB) and the Proposed Statement on Auditing Standards, External Confirmations (the ASB's proposed SAS), of the ASB of the AICPA.

The proposed auditing standard may be downloaded from the PCAOB’s website, www.pcaob.com.

New Publication
Our newest publication is the Quarterly Accounting and Auditing Reference Guide. Focusing on accounting, auditing and reporting issues with wide practice applications, this reference aid will benefit non-governmental accountants in public accounting and private industry. Available now at www.cpafirmsupport.com/home/OurServices/tabid/65/Default.aspx

Become a subscriber.
Subscribers have access to more detailed updates, Become a subscriber by going to http://www.cpafirmsupport.com/ and clicking on “Join Us.”