PCAOB Announces Auditor’s Use of the Work of Specialists and Auditing Accounting Estimates Top the Agenda for June 18 Standing Advisory Group Meeting
The Public Company Accounting Oversight Board today announced that its upcoming June 18 Standing Advisory Group meeting will focus on two ongoing standard-setting projects: the auditor's use of the work of specialists, and auditing accounting estimates, including fair value measurements.
The meeting agenda includes a discussion of a staff consultation paper on using the work of specialists, issued by the PCAOB today. The paper seeks input on potential changes to the standards, specifically regarding the objectivity and oversight of specialists and the use of their work in audits. At the June 18 meeting, SAG members will be asked to provide views on important questions raised in the paper.
Auditors of many companies use the work of specialists to bring necessary expertise to bear on the audit. The use of the work of specialists by auditors is often critical to auditing accounting estimates, including fair value measurements. Types of specialists that may be used by companies and their auditors include valuation specialists, appraisers, actuaries, and engineers.
The meeting agenda also includes an update on the staff's work in developing a new standard on auditing accounting estimates, along with a discussion of three areas where the staff is seeking SAG member views: emphasizing professional skepticism, addressing significant measurement uncertainty, and using third parties.
The SAG meeting also will include a discussion of recent PCAOB developments and the Board's current standard-setting activities.
The meeting will be held at the Washington Plaza Hotel, 10 Thomas Circle NW, Washington, DC, from 8:30 a.m. to 5:30 p.m. The meeting is open to the public and also webcast from the PCAOB website.
The SAG includes investors, auditors, public company executives, and others. The group is chaired by PCAOB Chief Auditor and Director of Professional Standards Martin F. Baumann.
More information on the Standing Advisory Group is available on the PCAOB website.