Academic journal article Journal of Accountancy

ASB and SECPS Make Revisions

Academic journal article Journal of Accountancy

ASB and SECPS Make Revisions

Article excerpt

The SEC wanted professional standards to specifically address concurring partner responsibilities. In response, the ASB prepared an exposure draft that amends Statement on Quality Control Standards (SQCS) no. 2, System of Quality Control for a CPA Firm's Accounting and Auditing Practice. The new language calls for firms to establish engagement performance policies and procedures--encompassing all phases of the design and execution of the engagement--that address concurring partner review requirements (applicable to SEC engagements) as set forth in the SECPS membership requirements. When issued as final, the standard will be effective as of January 1, 2000.

To further refine the audit review process, the SECPS revised Appendix E, "Concurring Partner Review Requirement," of its membership requirements, establishing minimum qualifications for concurring partners and addressing the nature, extent and timing of the review and the required documentation. Although a concurring partner's review responsibility is not equivalent to that of an audit engagement partner, the concurring partner is expected to

* Discuss significant accounting, auditing and financial reporting matters with the audit engagement partner.

* Discuss the audit engagement team's identification and audit of high-risk transaction and account balances. …

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