ACCA (the Association of Chartered Certified Accountants) has today responded to the Proposed Framework for Reorganization of PCAOB Auditing Standards (Rulemaking Docket Matter No.40) a consultation from the Public Company Accounting Oversight Board.
ACCA Council member Dr. Kenneth R. Henry said: 'The PCAOB auditing standards are certainly due for reorganisation; we have had a decade with them in two series – the interim standards and the Board's own-issued standards. It's time to bring them together.'
In addition to his ACCA Council membership, Dr. Henry is also a CPA. This year, 2013, marks 40 years of professional accounting and auditing experience – in Jamaica, Saudi Arabia, and the USA. Dr. Henry is currently a Clinical Associate Professor at Florida International University in Miami, Florida USA.
ACCA believes that the business environment gains from the adoption of global standards. Investors, who increasingly look at investments on an international basis, benefit from greater transparency and comparability; less volatility and, consequently, less risk.
Dr. Henry continued: 'The Board recognised the need for people to find their way around the PCAOB standards; the consultation shows how they would map against the International Standards on Auditing (ISAs) issued by the International Auditing and Assurance Standards Board and the ASB standards. This proposal is a first step and will benefit users, but it is not a bold step. The Board has a golden opportunity to declare a clear destination for the standards and to demonstrate confidence in its ability to get then there in a more modern vehicle.'
ACCA’s response to the consultation stressed the long-term advantages of adopting the ISAs in a manner that preserved the improvements in standards achieved by the Board, and matters relating to filings under Federal Securities Laws. That is the right destination and it reconciles the sets of standards and provides assurance to investors that PCAOB auditing standards meet or exceed the requirements of their international counterparts.
Dr. Henry concluded: 'The vehicle proposed for the reorganisation is about as modern as a Model T Ford – four digit references for standards that theoretically could accommodate 9999 different documents. That is too complicated. It also pays no attention to how this generation accesses information. When you read something on a cell phone or tablet you want to get straight to the relevant content, not worry about whether it is document 3103 or 6200. The PCAOB should seize this opportunity to take the lead in modernising.'