SEC Approves Amendments that Reorganize the PCAOB's Auditing Standards | Practical Law

SEC Approves Amendments that Reorganize the PCAOB's Auditing Standards | Practical Law

The SEC approved amendments that reorganize the Public Company Accounting Oversight Board's (PCAOB) auditing standards into a topical structure with a single, integrated numbering system.

SEC Approves Amendments that Reorganize the PCAOB's Auditing Standards

Practical Law Legal Update w-000-6005 (Approx. 4 pages)

SEC Approves Amendments that Reorganize the PCAOB's Auditing Standards

by Practical Law Corporate & Securities
Published on 18 Sep 2015 • USA (National/Federal)
The SEC approved amendments that reorganize the Public Company Accounting Oversight Board's (PCAOB) auditing standards into a topical structure with a single, integrated numbering system.
On September 17, 2015, the SEC issued an order approving amendments that reorganize all of the Public Company Accounting Oversight Board's (PCAOB) auditing standards into a topical structure with a single integrated numbering system. The reorganization is intended to:
  • Make the PCAOB standards easier to use and understand.
  • Provide a structure for updating the standards in the future.
  • Help avoid confusion between the PCAOB's standards and the standards of the American Institute of Certified Public Accountants (AICPA).
Under the reorganization, PCAOB auditing standards are grouped into five categories:
  • General auditing standards.
  • Audit procedures.
  • Auditor reporting.
  • Matters relating to filings under federal securities laws.
  • Other matters associated with audits.
Each category is divided into subcategories to further organize similar topics, such as standards related to auditor communications in the general auditing standards category. The new reference system uses an "AS" prefix to identify the auditing standard, and each standard is assigned a unique four-digit section number.
The amendments do not impose new requirements on auditors or change the substance of the requirements for performing and reporting on audits under PCAOB standards. Specifically, the amendments include updates to:
  • Section numbers.
  • Cross references.
  • Titles of certain standards.
Other related amendments include, among other things:
  • Removing standards that are no longer necessary.
  • Replacing references to generally accepted auditing standards.
  • Updating certain PCAOB rules to reflect the reorganized auditing standards.
The reorganization and related amendments will take effect as of December 15, 2016. However, auditors and others may use and reference the reorganized standards before the effective date given that the amendments do not substantively change the auditing standards.
To learn more about the PCAOB's auditing standards, see Practice Notes, Auditing: An Overview and Accounting, Auditing and Financial Reporting in the US: Governing Authorities.