Happenings at the Board of Directors' December meeting.
* Kathy G. Eddy, chair of the Special Committee on State Regulation, reviewed the committee's mission, membership and activities to date. An environmental scan of state legislative, regulatory and executive activity associated with the Sarbanes-Oxley Act is under way. Six major issues of concern identified by the committee are: uniformity, scope of services, auditor rotation, composition of state boards of accountancy, peer review and ethics enforcement.
* Auditing Standards Board projects related to Sarbanes-Oxley were discussed. Task forces have been established to address internal control, audit committees, quality control and other issues (document retention, concurring partner reviews, foreign affiliate issues and attorney letter amendments).
* The board was informed that at the invitation of the Public Company Accounting Oversight Board, representatives of the SEC Practice Section met with the PCAOB, which was seeking historical information about the section's peer review process. The PCAOB is formulating its inspection program for auditors of financial statement issuers in accordance with the Sarbanes-Oxley Act.
* Changes being considered by the Peer Review Board were highlighted and board members provided their input. The changes are designed to improve peer review and narrow the gap between what peer review is and what the expectation of it is.
* An update on CPA2Biz showed that as a result of many improvements, the Web site has enjoyed positive feedback and an increase in registered users (see related article on page 6).
* The Tax Division reported on efforts to create a legislative proposal that would provide small businesses and practitioners some relief from the "workload compression" problem, while not losing an unacceptable amount of government revenues. The board encouraged the Tax Division to forge ahead with its proposal.
Important Update on SEC Rulemaking
At press time, the SEC adopted final auditor independence rules. A small firm alternative for partner rotation is included. For details, visit www.aicpa.org/sarbanes/secproposesrules.asp.
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|Title Annotation:||American Institute of Certified Public Accountants|
|Date:||Feb 1, 2003|
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