At the June meeting of the Public Company Accounting Oversight Board’s Standing Advisory Group (SAG), there was some discussion of the nature and extent of the working relationship between the PCAOB, the Securities and Exchange Commission, and the Financial Accounting Standards Board.
Some SAG members raised the subject during the group’s discussion of whether and what type of auditing guidance the PCAOB might consider in connection with the new revenue recognition standard issued by FASB and the International Accounting Standards Board. In particular, certain SAG members questioned why, in light of the various areas in the new standard that involve significant estimates and judgment, this question was being raised by the PCAOB staff now instead of when the accounting standard setters were developing the new standard in order to ensure that the resulting financial information would be auditable.
