PCAOB adopts audit committee communication standard

The US Public Company Accounting Oversight
Board (PCAOB) has adopted auditing standard No. 16 on
communications with audit committees and has made amendments to
other standards.

The new standard aims to ensure meaningful
dialogue between auditors and audit committees in order to improve
the quality of audits.

PCAOB chief auditor and director of
professional standards Martin Baumann said the standard emphasises
effective two-way communication required for important aspects of
audits and financial statements.

The standard and the amendments replace
interim auditing standards AU sec. 310, Appointment of the
Independent Auditor, and AU sec. 380, Communication with Audit
Committees.

If the US Securities Exchange Commission (SEC)
approves the new standard it will be effective from 15
December.

The PCAOB said the standard and related
amendments apply to audits of emerging growth companies if the SEC
makes a determination called for under the Jumpstart Our Business
Startups Act of 2012.