More oversight pressure on auditors: The Public Company Accounting Oversight Board (PCAOB) last week announced its proposed new auditing standard on engagement quality review. Pursuant to Section 103 of Sarbanes-Oxley, the new proposal would require all registered public accounting firms to provide a concurring or second partner review (also known as an Engagement Quality Review) for all audit reports conducted in compliance with PCAOB standards. “By focusing the review on higher risks, the proposed standard would increase the likelihood of identifying and correcting deficiencies in the audit prior to the issuance of the auditor’s report,” says the PCAOB release. The Board is requesting comments on the proposal prior to May 12, 2008. For more information, visit PCAOB.org.
Please let us know
if you have any comments about this article or enhancements you would like to see.