Transcript Paul Beswick, Deputy Chief Accountant, Professional Practice, SEC PowerPoint Presentation

th
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Annual
Financial Reporting
Conference
Baruch College
Paul Beswick
Deputy Chief Accountant
April 30, 2009
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Disclaimer
The Securities and Exchange
Commission, as a matter of policy,
disclaims responsibility for any
private publication or statement by
any of its employees. Therefore, the
views expressed today are our own,
and do not necessarily reflect the
views of the Commission or the other
members of the staff of the
Commission.
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Agenda
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SEC Proposed Rulemaking - IFRS
PCAOB Inspections – Foreign Firms
PCAOB Standard Setting Projects
PCAOB Rule-making
Final Remarks
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SEC Proposed Rulemaking - IFRS
• Approved by Commission on August 27, 2008
• Released for comment on November 14, 2008
 Comment period extended additional 60 days due to
requests by preparers (ended April 20, 2009)
 Over 200 comment letters received from issuers,
investors, auditors, academics and other interested
parties
• Staff is currently analyzing comments
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PCAOB Inspections – Foreign
Firms
• Proposed Policy Statement
 Issued in December 2007
 Outlined PCAOB’s framework for conducting foreign
inspections, including coordination with foreign audit
regulators
• Timing of Inspections
 Proposed rule in December 2008 to defer certain
inspections for up to three years
 In addition, sought comment on potential PCAOB
actions in the event non-U.S. firms decline to comply
with inspection demands
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PCAOB Standard Setting Projects
– Engagement Quality Review
• Required by SOX Section 103 for all
issuer audits
• Initial proposal in February 2008
 Received significant comments on nature
and extent of EQR review
• Re-exposed draft on March 9, 2009
 Key areas of change
 Comment period closed April 20, 2009
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PCAOB Standard Setting Projects
– Risk Assessment Standards
• Issued proposal October 21, 2008
• Proposed seven standards
 Update audit requirements for assessing and
responding to risks in an audit
 Supersede existing interim standards
 Considered existing standards developed by the
IAASB
• Comment period closed February 18, 2009
 Received 33 comment letters
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PCAOB Rulemaking
• Annual and Special Reporting
 Approved by PCAOB and submitted to SEC in June
2008
 Establish a reporting framework for registered public
accounting firms
• Succession of Audit Firms
 Provides opportunity for continuity of a firm’s
registration under certain circumstances
• Effective upon SEC approval (60 days after
posting in Federal Register)
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