PCAOB exposure draft on related parties and related amendments
Mar 01, 2012
The Public Company Accounting Oversight Board (PCAOB) has released a proposed auditing standard on related parties.
The proposed standard is designed to improve the auditor's evaluation of a public company's identification of, accounting for, and disclosure about its relationships and transactions with related parties.
The Board also is proposing amendments to enhance the auditor's identification and evaluation of a company's significant unusual transactions, which are significant transactions that are outside the normal course of business or that otherwise appear to be unusual due to their timing, size or nature. In addition, the Board is proposing amendments that, among other things, would improve the auditor's understanding of a company's financial relationships with its executive officers.
Comments on the proposed standard and related amendments are open until 15 May 2012. Click for PCAOB press release (link to PCAOB website).