Haynes and Boone, LLP
  January 30, 2013 - United States of America

PCAOB Auditing Standard No. 16 Outlines Requirements for Communications between Audit Committees and Auditors
  by Ronald W. Breaux, Kit Addleman, Timothy Newman

“The audit committee directly oversees management’s reporting of the company’s financial position and results to investors. Auditors validate. Naturally, both agents should support each other’s work with an open dialogue about how to protect investors from misleading or inadequate management reports.”  - James R. Doty, PCAOB Chairman, PCAOB Open Board Meeting, Aug. 15, 2012


The Public Company Accounting Oversight Board (“PCAOB”) recently issued Auditing Standard No. 16, Communications with Audit Committees (“Standard 16”), to provide a framework for the discussions that an auditor must undertake with the audit committee of its public company clients. Approved by the Securities and Exchange Commission on December 20, 2012, Standard 16 assembles numerous best practices previously followed by first-rate auditors and combines them with new articulations in a single and comprehensive auditing standard. It provides clear guidance not only to auditors, but also to audit committees, regarding the conversations the two parties should be having throughout the course of an audit engagement. Standard 16 applies to audits of fiscal years beginning on or after December 15, 2012.

To read the full alert, click on the PDF linked below.

PDF - PCAOB-Auditing-Standard-16.pdf

For more information, please contact one of these Haynes and Boone attorneys:

Ronald W. Breaux
214.651.5688
[email protected]

 

Kit Addleman
214.651.5783
[email protected]

 

Barry F. McNeil
214.651.5580
[email protected]

 

Thad Behrens
214.651.5668
[email protected]

 

 

Bill Morrison
214.651.5018
[email protected]




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Read full article at: http://www.haynesboone.com/pcaob-auditing-standard-no-16/