Proposed and Adopted Standards and Related Rules
Proposed
Proposed Auditing Standards — Auditor's Assessment of and Response to Risk
The Board is proposing a suite of seven new auditing standards related to the auditor's assessment of and response to risk, and related conforming amendments. The proposed standards would supersede the Board's interim auditing standards related to audit risk and materiality, audit planning and supervision, consideration of internal control in an audit of financial statements, audit evidence, and performing tests of accounts and disclosures before year-end. The proposed standards would apply to all audits performed in accordance with the standards of the PCAOB.
Proposed Auditing Standard—Engagement Quality Review
The Board is proposing an auditing standard, Engagement Quality Review, which would supersede its interim concurring partner review requirement, and a conforming amendment to the Board's interim quality control standards. The proposed standard would apply to all engagements performed in accordance with the standards of the PCAOB.
Adopted
Auditing Standard – Evaluating Consistency of Financial Statements
On January 29, 2008, the Board adopted an auditing standard, Evaluating Consistency of Financial Statements, and amendments to its interim standards that, if approved by the Securities and Exchange Commission, would supersede AU sec. 420, Consistency of Application of Generally Accepted Accounting Principles; remove the hierarchy of generally accepted accounting principles from the interim auditing standards; and make certain changes to its interim standards. Auditing Standard No. 6 is effective November 15, 2008.
Adopted standards and rules are not final until approved by the SEC.
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