03 April 2007

PCAOB proposes New Auditing Standard and amendments to GAAP

The PCAOB proposed for public comment an auditing standard, Evaluating Consistency of Financial Statements. The proposed standard and related amendments to the interim standards would update and clarify the auditors’ responsibilities with respect to evaluating and reporting on matters relating to the consistency of the financial statements. The Board also proposed to remove the hierarchy of GAAP from its interim auditing standards in light of the proposal by the Financial Accounting Standards Board to place the hierarchy in the accounting standards.

The Board will seek comment on the proposed auditing standard for a 45-day period. Any new auditing standard, amendment to the interim auditing standards or rule amendment that is adopted will be submitted to the SEC for approval.

Press release
SEC proposed rule change
Further proposed amendments:
Concept release concerning scope of rule 3523 Tax Services for persons in financial reporting oversight roles
Proposed auditing standard – evaluating consistency of financial statements and proposed amendments to interim auditing standards
Staff Q+A

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