PCAOB Adopted AS 16
In August 2012, the Public Company Accounting Oversight Board (PCAOB) adopted Auditing Standard (AS) No. 16, Communications with Audit Committees. The PCAOB believes its adoption is in the public interest as it establishes requirements that enhance the relevance, timeliness and quality of the communications between the auditor and the Audit Committee, while also better aligning with the requirements of the Sarbanes-Oxley Act of 2002 to facilitate Audit Committees’ financial reporting oversight. AS 16 largely retains previous guidance and does not impose any new performance requirements (i.e., auditing procedures) on the auditor. Rather, it expands and/or enhances current communication requirements between the auditor and the Audit Committee to align and complement auditing procedures already required by other PCAOB audit and risk assessment standards.