PCAOB standards-setting priorities for 2007

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06 Oct 2006

The Standing Advisory Group of the US Public Company Accounting Oversight Board (PCAOB) met on 5 October 2006. At that meeting, PCAOB Chief Auditor Thomas Ray outlined the PCAOB's standards-setting priorities for 2007: Four standards projects PCAOB is currently working on: Revision of AS 2 An Audit of Internal Control Over Financial Reporting Performed in Conjunction With an Audit of Financial Statements Principles of Reporting – this standard would reflect FASB Statement 154 Accounting Changes and Error Corrections, including the FAS 154 hierarchy of generally accepted accounting principles. Engagement Quality Review Risk Assessment, including fraud risk assessment Projects beginning over the next year: Related Parties (including consideration of fraud risk factors) Confirmations (including consideration of fraud risk factors) Specialists (including how specialists are used in fair value measurements) Activities removed from the priority list (these were on the 2006 list): Communications with Audit Committees Quality Control Standards Codification of PCAOB standards and authority of PCAOB interim standards Mr.

Ray also noted that the PCAOB is evaluating the need for revisions to or guidance on existing auditing standards on auditing estimates, auditing fair values, and using the work of specialists – all of which are pertinent to the audit of fair value measurements – in light of FASB Statement No. 157 Fair Value Measurements. Click to (PDF 38k).

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