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GAAP.RUNewsPCAOB Mulls Revising Audit Confirmation Standards

PCAOB Mulls Revising Audit Confirmation Standards

Publication date: 15 April 2009

The PCAOB voted to issue for public comment a concept release on possible revisions to the audit confirmations standard, AU Sec. 330. Confirmation is an audit process in which an auditor obtains and evaluates a direct communication from a knowledgeable third party in response to a request for information regarding account balances, transactions or other items that comprise a company’s financial statements.

The Public Company Accounting Oversight Board (PCAOB) issued a concept statement concerning revisions to the audit confirmations standard (AU Sec. 330) after a recent wave of auditing scandals (Madoff, Satyam, Parmalat, and other), because confirmation is a very omportant audit process in which an auditor obtains and evaluates a direct communication from a knowledgeable third party all information that comprise a company’s financial statements; Mark W. Olson and Steven B. Harris commented.