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PCAOB Issues New Practice Alert on Audit Considerations
Practical Law Legal Update 9-515-7208 (Approx. 3 pages)
PCAOB Issues New Practice Alert on Audit Considerations
by PLC Corporate & Securities
| Published on 08 Dec 2011 • USA (National/Federal) |
The PCAOB issued a new Audit Practice Alert relating to current economic conditions that might affect the risk of material misstatement in financial statements.
On December 6, 2011, the Public Company Accounting Oversight Board (PCAOB) issued Staff Audit Practice Alert No. 9 to assist auditors in identifying matters related to the current economic environment that might affect the risk of material misstatement in company financial statements. As discussed in a press release, the alert addresses:
- The impact of economic conditions on the audit.
- Auditing fair value measurements and estimates.
- The auditor's consideration of a company's ability to continue as a going concern.
- Auditing financial statement disclosures.
The alert updates Staff Audit Practice Alert No. 3 (see Legal Update, PCAOB Issues New Practice Alert on Audit Considerations), which was superseded in part in 2010 by Auditing Standard Nos. 8-15 (see Legal Update, PCAOB Adopts New Auditing Standards on Risk Assessment).
The alert is intended to help auditors identify issues that might affect audit risk, but it does not impose any new rules.