Dataline: PCAOB Proposes New Auditing Standard on Confirmations (No. 2010-30)

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On July 13, 2010, the PCAOB released for public comment a proposed auditing standard, Confirmation, and related amendments to its interim standards. The proposed standard includes updates to the PCAOB's existing interim standard to reflect significant advances in technology, including increased use of electronic communication methods, and proposes new requirements regarding the confirmation of specific accounts, confirmation procedures, and the evaluation of audit evidence obtained from performing confirmation procedures. It also contains proposed conforming amendments to existing standards. Comments on the proposed standard and amendments are due September 13, 2010. The standard would be effective for audits of fiscal years ending on or after December 15, 2011, subject to approval by the SEC. This PwC Dataline summarizes the proposal and provides the firms observations on it.