PCAOB Proposes Reorganization of Auditing Standards | Practical Law

PCAOB Proposes Reorganization of Auditing Standards | Practical Law

The Public Company Accounting Oversight Board (PCAOB) issued a proposed framework that would reorganize its auditing standards into a topical structure with a single, integrated numbering system.

PCAOB Proposes Reorganization of Auditing Standards

Practical Law Legal Update 4-525-4867 (Approx. 3 pages)

PCAOB Proposes Reorganization of Auditing Standards

by PLC Corporate & Securities
Published on 28 Mar 2013 • USA (National/Federal)
The Public Company Accounting Oversight Board (PCAOB) issued a proposed framework that would reorganize its auditing standards into a topical structure with a single, integrated numbering system.
On March 26, 2013, the Public Company Accounting Oversight Board (PCAOB) issued a Proposed Framework for Reorganization of PCAOB Standards. If adopted, the framework would reorganize all of the PCAOB's auditing standards into a topical structure with a single integrated numbering system. The proposal is intended to:
  • Make the PCAOB standards easier to use and understand.
  • Provide a structure for updating the standards in the future.
  • Help avoid confusion between the PCAOB's standards and the standards of the American Institute of Certified Public Accountants (AICPA).
Under the proposal, PCAOB auditing standards would be grouped into five categories:
  • General auditing standards.
  • Audit procedures.
  • Auditor reporting.
  • Matters relating to filings under federal securities laws.
  • Other matters associated with audits.
The goal of the reorganization is not to make substantive changes to the requirements of the standards or redraft them. While the reorganized standards would not mirror the organizational structure of the standards of the International Auditing and Assurance Standards Board (IAASB), the PCAOB has indicated it believes the reorganization could facilitate comparison between PCAOB and IAASB standards.
The PCAOB is accepting public comments on the proposed reorganization until May 28, 2013.
To learn more about the PCAOB's auditing standards, see Practice Notes, Auditing: An Overview and Accounting, Auditing and Financial Reporting in the US: Governing Authorities.