PCAOB to Consider Adopting Auditing Standards on Auditor’s Risk Assessment and Issuing Release on Failure to Supervise

The Public Company Accounting Oversight Board has scheduled an Open Meeting for Thursday, Aug. 5, at 9:30 a.m., in the PCAOB meeting room at 1666 K St. N.W., Washington, D.C.

The Board will consider adopting eight auditing standards and related amendments that would revise the requirements for assessing and responding to risk during an audit. The PCAOB initially proposed the risk assessment standards on Oct. 21, 2008, and reproposed revised standards on Dec. 17, 2009.

The Board also will consider issuing a release discussing the provision of the Sarbanes-Oxley Act of 2002 that authorizes the PCAOB to impose disciplinary sanctions on registered public accounting firms and their supervisory personnel who fail to reasonably supervise associated persons. The proposed release would highlight the scope of that provision, Section 105(c)(6) of the Act, and would separately discuss and seek comment on conceptual approaches to rulemaking that would complement its application.

The meeting is open to the public and will be Webcast via a link on the PCAOB Web site. The meeting also will be available via podcast later in the day.