PCAOB proposal on communications with audit committees
30 Mar 2010
The US Public Company Accounting Oversight Board (PCAOB) has proposed for comment an auditing standard on Communications with Audit Committees, and a series of related amendments to its interim standards.
The proposal addresses requirements for auditors to communicate with audit committees of public company boards of directors. The proposed standard includes a requirement for the auditor to establish a mutual understanding of the terms of the audit engagement with the audit committee and to document that understanding in an engagement letter. The proposal includes, among other things, requirements relating to communication about critical accounting polices, practices, judgements, and estimates. Comment deadline is 28 May 2010. Click for Press Release (PDF 39k).
