27 August 2012
The Public Accounting Oversight Board (PCAOB) has recently adopted Auditing Standard No. 16, Communications with Audit Committees, which still needs to be approved by the Securities and Exchange Commission before it becomes effective. While it does not impose any new performance requirements for audits, the new standard enhances many existing communications requirements and adds new auditor communication requirements. This standard is designed to encourage constructive, two-way communication between the auditor and the audit committee throughout the audit process. The PCAOB also issued a release entitled Information for Audit Committees About the PCAOB Inspection Process, to assist audit committees in understanding PCAOB inspections of audit firms and to suggest ways for audit committees to gather useful information from their audit firms about such inspections.