PCAOB To Consider Reporting Standards And Auditor Tax Services

by Leroy Baker, Tax-News.com, New York

25 July 2005

The US Public Company Accounting Oversight Board has scheduled an open meeting for Tuesday (July 26) at which the board is set to consider 'material weakness' in reporting standards and rules concerning auditor independence.

On March 31, 2005, the PCAOB proposed the adoption of an auditing standard for reporting on whether a previously flagged up material weakness continues to exist. This standard establishes requirements and provides direction that applies when an auditor is engaged to report on whether a previously reported material weakness in internal control over financial reporting continues to exist as of a date specified by management.

In addition, on December 14, 2004, the board proposed rules concerning auditor independence and tax services, which, among other things, seek to identify circumstances in which the provision of tax services impairs an auditor's independence.

The meeting, to be held at the PCAOB's office in Washington, will be open to the public and will also be broadcast via the board's website.

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