Board to Consider Inspections Rules, Standards on Internal Control

The Public Company Accounting Oversight Board has scheduled an open meeting for 10 a.m. Tuesday, October 7, in the Senate Room of the Capital Hilton at 16th & K Streets NW, Washington, D.C., to consider:

• Adopting rules on inspections. The Board has statutory responsibility to conduct inspections of registered public accounting firms on a regular basis, including annual inspections for the largest firms. Board inspections must examine, among other things, a firm's quality control systems and selected audit and review engagements of the firm. The Board will consider adopting rules establishing a procedural framework for the inspections program. The rules were proposed July 28.
• Proposing an Auditing and Related Professional Practice Standard for the Attestation to Management’s Assessment of Internal Control Over Financial Reporting. Section 404 of the Sarbanes-Oxley Act requires each registered public accounting firm that prepares or issues an audit report on the financial statements of an issuer to attest to, and report on, management’s assessment of the effectiveness of the issuer’s internal control over financial reporting. Section 404 of the Act, as well as Section 103 of the Act, direct the PCAOB to establish professional standards governing the independent auditor's attestation to, and reporting on, management's assessment of the effectiveness of internal control.
• Proposing a Rule Defining Terms Used in Auditing and Related Professional Practice Standards. The Board will consider proposing a rule that defines terms used in the Board’s auditing and related professional practice standards, including the interim professional auditing standards adopted by the Board on April 18.

The meeting will be open to the public and webcast. Real-time and archived audio webcasts of PCOAB meetings are accessible at www.connectlive.com/events/pcaob/.