Monthly Archives: January 2010

SEC Approves the PCAOB Engagement Quality Review Standard For Public Company Audits

The new PCAOB Auditing Standard No. 7 expands the existing requirements for concurring reviews. According to the PCAOB, a well-performed engagement quality review can serve as an important safeguard against erroneous or insufficiently supported audit opinions and contribute to audit quality. The review serves as a check on the work performed by the engagement team, and the PCAOB believes it would increase the likelihood that a registered public accounting firm would identify any significant engagement deficiencies before it issues its audit report.  (Source: WebCPA)

The standard is significantly more stringent than the current concurring review requirement and of course will add some more time and cost to the audits.

XBRL Fast Approaching

Most U.S. public companies that will be required to file their financial statements with the Securities and Exchange Commission using eXtensible Business Reporting Language (XBRL) are actively preparing to do so.  Most filers report taking more than 120 hours to prepare for the first round of submissions, according to a survey by the AICPA and XBRL US. Source CPA Letter and JournalofAccountancy.com