Those inspections will begin this month. The PCAOB said its inspectors will evaluate:

• the degree to which the audit of internal control over financial reporting and the audit of financial statements were performed as a single, integrated and mutually reinforcing process;
• whether auditors use a top-down approach in which company-level controls were identified as the first step in planning the audit;
• whether auditors properly assessed risk and used a risk-based approach to determine the nature, timing, and extent of internal control testing; and
• whether auditors took full advantage of the opportunities available to use the work of others, such as the company's internal audit staff.

The 2006 inspections will include the annual inspections of the nine firms – eight US and one Canadian – that audit more than 100 public companies. In addition, the PCAOB will continue its three-year cycle of inspections of smaller firms that audit at least one public company, including non-US firms. In 2005, the PCAOB inspected 281 firms, including 16 non-US firms. Click for:

• (PDF 46k)
• (PDF 58k)

You will find past issues Here. Issues covered in the September 2006 edition include:

• Issue No. 06-6, Debtor's Accounting for a Modification (or Exchange) of Convertible Debt Instruments
• Issue No. 06-7, Issuer's Accounting for a Previously Bifurcated Conversion Option in a Convertible Debt Instrument When the Conversion Option No Longer Meets the Bifurcation Criteria in FASB Statement No. 133, Accounting for Derivative Instruments and Hedging Activities
• Issue No. 06-8, Application of the Assessment of a Buyer's Continuing Investment Under FASB Statement No. 66, Sales of Real Estate, for Sales of Condominiums
• Issue No. 06-9, Reporting a Change in (or Elimination of) a Previously Existing Difference Between the Fiscal Year-End of a Parent Company and That of a Consolidated Entity or Between the Reporting Period of an Investor and That of an Equity Method Investee
• Issue No. 06-10, Accounting for Deferred Compensation and Postretirement Benefit Aspects of Collateral Assignment Split-Dollar Life Insurance Arrangements Issue No. 06-11, Accounting for Income Tax Benefits of Dividends on Share-Based Payment Awards
• Issue No. 06-12, Application of AICPA Audit and Accounting Guide, Brokers and Dealers in Securities, to Entities That Engage in Commodity Trading Activities and Related Issues

The IAESB proposes to undertake three high priority activities, beginning in 2007. These are:

• Conducting a fundamental review of the Framework for International Education Statements (IESs), considering developments in accounting education and the accountancy profession as a whole since this was first written;
• Developing a benchmarking methodology to help IFAC members and others achieve the measurable implementation of IESs; and
• Reviewing existing IESs to determine areas where the clarity of standards could be improved and/or additional guidance most usefully developed.

Comments on the exposure draft are requested by 28 February 2007. Click for Press Release (PDF 82k).

This 96-page guide includes information about:

• IASB structure and contact details.
• Use of IFRSs around the world, including updates on Europe, Asia, USA, and Canada.
• Summaries of each IASB Standard (through IFRS 7) and Interpretation (through IFRIC 9), as well as the Framework and the Preface to IFRSs.
• Background and tentative decisions on all current IASB projects.
• IASC and IASB chronology.
• Other useful IASB-related information.

We are pleased to grant permission for accounting educators and students to print copies of the PDF file for educational purposes. Please contact your local Deloitte practice office to request a printed copy. You will find Links to our Many Other IFRS Publications here.

The International Accounting Standards Board and the US Financial Accounting Standards Board held a joint meeting at in London on Thursday and Friday 27 and 28 April 2006. Click here for the preliminary and unofficial Notes Taken by Deloitte Observers at the Joint IASB-FASB Meeting.

Representatives of the Institute of Chartered Accountants of Sri Lanka (ICASL) presented an update on the adoption of IFRSs in Sri Lanka. Sri Lanka has adopted many of the IASs/IFRSs and has kept most of them current including the IASB improvements. Our Sri Lanka Page has a table listing the status of adoption of each IAS and IFRS in Sri Lanka. A summary of the differences is as follows:

• Sri Lanka has not yet adopted IAS 29, IAS 32, IAS 39, or IAS 41.
• Nor has Sri Lanka adopted IFRS 1, IFRS 2, IFRS 4, IFRS 6, or IFRS 7.
• The Sri Lankan adopted versions of IAS 1, IAS 19, and IAS 38 do not reflect the latest IASB versions.
• Sri Lanka has retained its version of IAS 25 Accounting for Investments, which was replaced by IAS 39.
• Sri Lanka has issued standards on Plantations and on Revenue Recognition and Disclosures in the Financial Statements of Finance Companies, which have no IFRS equivalent.

Sri Lanka has a separate Sri Lankan Accounting Standard for Smaller Enterprises (SLASSE).

The International Accounting Standards Board and the US Financial Accounting Standards Board held a joint meeting at in London on Thursday and Friday 27 and 28 April 2006. Click here for the preliminary and unofficial Notes Taken by Deloitte Observers at the Joint IASB-FASB Meeting.

This overview provides guidance on applying AS 4. Section 404 of the Sarbanes-Oxley Act of 2002 requires public companies to report annually on the effectiveness of the company's internal controls. The company's independent auditor must report on that assessment. AS No. 4 describes the steps to be used by auditors when a company voluntarily engages them to report on whether a material weakness, previously identified in the annual Section 404 report, no longer exists.

(PDF 64k). This document provides the PCAOB staff's opinions on issues related to the implementation of the PCAOB funding rules. There are 232 questions and answers.

The appointment would be to replace one member whose term expires 14 July 2006. Nominations are sought by 1 June 2006.

Click for Announcement (PDF 29k).

 

Click to go to World Congress of Accounting Educators Website.