8th Annual Financial Reporting Conference Baruch College

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8th AnnualFinancial Reporting
ConferenceBaruch 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

• 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 PCAOBs 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 firms
  registration under certain circumstances
• Effective upon SEC approval (60 days after
  posting in Federal Register)