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Board Proposes New Auditing Standard: Engagement Quality Review

By Toby Lucich

(follow on to yesterday's announcement - with link to the proposed standard pdf)

The Public Company Accounting Oversight Board voted today to propose for public comment a new auditing standard on engagement quality review and a conforming amendment to the Board?s interim quality control requirements. This proposed standard would supersede the Board?s interim quality control standard, SECPS Requirements of Membership § 1000.08(f).

Section 103 of the Sarbanes-Oxley Act of 2002 directs the Board to include in its auditing standards a requirement that each registered public accounting firm "provide a concurring or second partner review and approval of [each] audit report (and other related information), and concurring approval in its issuance." The proposed standard, which would apply to all engagements performed in accordance with the standards of the PCAOB, is risk-based and designed to increase the likelihood that engagement deficiencies will be identified and corrected prior to the issuance of the auditor's report.

PCAOB Release No. 2008-002: Proposed Auditing Standard ? Engagement Quality Review and Conforming Amendment to the Board?s Interim Quality Control Standards

Board Proposes New Auditing Standard: Engagement Quality Review

Full post as published by inside Sarbanes Oxley on February 27, 2008 (boomark / email).