PCAOB Standing Advisory Group Discusses Standards Priorities

The Public Company Accounting Oversight Board today sought the advice of its Standing Advisory Group on a series of topics for consideration as possible auditing and related professional practice standards during the group’s meeting in Washington, DC.

“We appreciate the expertise of the members of the Standing Advisory Group as we plan the Board’s standards-setting agenda for 2005,” said PCAOB Chief Auditor Douglas R. Carmichael. “Their insight will be invaluable as we proceed with our responsibility to establish professional standards.”

Among the topics that the Board is considering for proposed auditing standards:

• Auditor independence and tax services.
• Detection of and reporting on financial fraud.
• The relative authority of auditing guidance in the Board’s interim auditing standards.
• Communications with audit committees.
• Engagement quality review, also known as concurring or second partner review.
• Auditing related-party transactions.
• Consistency of application of generally accepted accounting principles.
• Use of confirmations in an audit.
• Auditing fair value measurements and disclosures.
• Elements of quality control for registered firms.
• Assessing audit risk.