In the face of rising concerns over the lack of uniform valuation credentials, the Public Company Accounting Oversight Board (PCAOB) received a status report at its standing advisory group’s June 18 meeting. Jouky Chang (Duff & Phelps) said that efforts are slowly underway to bring more stability to the field, and he described various initiatives designed to create a uniform set of credentials. These initiatives include a meeting of a group of valuation representatives with the Financial Accounting Standards Board, Securities and Exchange Commission (SEC), and PCAOB.
The notion of creating a uniform set of credentials was moved to the front burner in 2011, when Paul Beswick, who was then SEC deputy chief accountant, put some of the blame for the 2008 financial crisis on the lack of uniform credentials. He urged that the valuation profession work toward one single set of credentials. Also at the June 18 meeting, the PCAOB staff consultation paper, “The Auditor’s Use of the Work of Specialists,” was discussed. The paper contains a number of questions intended to help the agency understand various perspectives on existing standards and alternatives. A number of valuation firms, including Duff & Phelps, Moss Adams, and others, submitted comment letters with respect to the use of valuation specialists.
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