March 25, 2012 1:12 AM | Posted by Paradise, Ted |
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Compliance Week reports on a reminder to auditors from the SEC, via the Center for Audit Quality's International Practices Task Force, that Item 17(c) of Form 20-F says, "If the financial statements comply with IFRS as issued by the IASB, such compliance must be unreservedly and explicitly stated in the notes to the financial statements and the auditor's report must include an opinion on whether the financial statements comply with IFRS as issued by the IASB". read more
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August 19, 2011 11:24 PM | Posted by Paradise, Ted |
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The Public Company Accounting Oversight Board (PCAOB) issued a concept release to solicit public comment on ways that auditor independence, objectivity and professional skepticism can be enhanced, including through mandatory rotation of audit firms.
The release discusses mandatory audit firm rotation, an idea that has resurfaced periodically since the 1970s. By requiring periodic rotation of auditors would, proponents argue, enhance audit firm independence. However, this independence would come at a cost, as the efficiencies of using the same audit firm from year to year would be lost at each changeover of audit firms. Furthermore, some research cited in the release supports the proposition that audit quality is lower in the earlier years of a series of audit engagements. read more
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