03
Feb
10

A.01 Internet Problem (Worksheet 2)

Shelly Huzaynah 21207019

SMAK01-7

Auditing 2

Question :

  1. Who serves on the PCAOB’s standing advisory group (SAG)? How often does the group meet?

Answer :

People who serve on the PCAOB’s standing advisory group (SAG) consist of :

  • Douglas J. Anderson

Corporate Auditor, The Dow Chemical Company

Midland, Mich.

Term: 2009-2010

  • John L. (Arch) Archambault

National Managing Partner of Professional Standards, Grant Thornton LLP

Chicago, Ill.

Term: 2010-2011

  • Dennis R. Beresford

Ernst & Young Executive Professor of Accounting, Terry College of Business, The University of Georgia

Athens, Ga.

Boards of Directors, Various Public Companies

Term: 2010-2011

  • Neri Bukspan

Chief Quality Officer and Chief Accountant, Credit Market Services, Standard & Poor’s Financial Services, LLC

New York, N.Y.

Term: 2010-2011

  • Douglas R. Carmichael

Claire and Eli Mason Professor of Accountancy, Zicklin School of Business, Baruch College

New York, N.Y.

Term: 2010-2011

  • James D. Cox

Brainerd Currie Professor of Law, School of Law, Duke University Durham, N.C.

Term: 2009-2010

  • Sharon S. Fierstein

Partner, Litigation & Corporate Financial Advisory Services, Marks Paneth & Shron, LLP

New York, N.Y.

Term: 2009-2010

  • Margaret M. Foran

Chief Governance Officer, Vice President, and Corporate Secretary Prudential Financial, Inc.

Newark, N.J.

Term: 2010-2011

  • Michael J. Gallagher

Assurance Partner and U.S. National Office Leader, Pricewaterhouse Coopers LLP

Florham Park, N.J.

Term: 2010-2011

  • Gaylen R. Hansen

Audit Partner and Director of Accounting and Auditing Quality Assurance, Ehrhardt Keefe Steiner & Hottman PC

Denver, Colo.

Term: 2010-2011

  • Gail L. Hanson

Deputy Executive Director, State of Wisconsin Investment Board

Madison, Wis.

Term: 2009-2010

  • Patricia Ann K. (Kiko) Harvey

Vice President, Corporate Audit, Delta Air Lines

Atlanta, Ga.

Term: 2010-2011

  • Gary R. Kabureck

Vice President and Chief Accounting Officer, Xerox Corporation

Norwalk, Conn.

Term: 2010-2011

  • Anthony S. Kendall

Chief Executive Officer, Mitchell & Titus LLP

New York, N.Y.

Term: 2010-2011

  • Wayne A. Kolins

Partner and National Director of Assurance, BDO Seidman, LLP; Global Head of Audit and Accounting, BDO International

New York, N.Y.

Term: 2010-2011

  • Jeffrey P. Mahoney

General Counsel, Council of Institutional Investors

Washington, D.C.

Term: 2010-2011

  • Jamie S. Miller

Vice President, Controller and Chief Accounting Officer, General Electric Company

Fairfield, Conn.

Term: 2009-2010

  • Mary Hartman Morris

Investment Officer, Global Equity, California Public Employees’ Retirement System

Sacramento, Calif.

Term: 2010-2011

  • Steven B. Rafferty

Professional Practices Partner, BKD, LLP

Springfield, Mo.

Term: 2009-2010

  • Samuel J. Ranzilla

Audit Partner and National Managing Partner, Audit Quality and Professional Practice, KPMG LLP

New York, N.Y.

Term: 2009-2010

  • Kevin B. Reilly

Assurance Partner, National Professional Practice Group, Ernst & Young LLP

New York, NY

Term: 2010-2011

  • Barbara L. Roper

Director of Investor Protection, Consumer Federation of America

Washington, D.C.

Term: 2010-2011

  • Lawrence J. Salva

Senior Vice President, Chief Accounting Officer and Controller, Comcast Corporation

Philadelphia, Pa.

Term: 2010-2011

  • Kurt N. Schacht

Executive Director, Centre for Financial Market Integrity, CFA Institute

New York, N.Y.

Term: 2010-2011

  • James V. Schnurr

Senior National Professional Practice Director, Audit and Enterprise Risk Services, Deloitte & Touche LLP

Wilton, Conn.

Term: 2009-2010

  • R. Harold Schroeder

Director of Relative Value Arbitrage, Carlson Capital

Greenwich, Conn.

Term: 2009-2010

  • Damon A. Silvers

Director of Policy and Special Counsel, AFL-CIO

Washington, D.C.

Term: 2010-2011

  • Paul J. Sobel

Vice President, Internal Audit, Mirant Corporation

Atlanta, Ga.

Term: 2009-2010

  • Lynn E. Turner

Senior Advisor and Managing Director, LECG

San Francisco, Calif.

Term: 2009-2010

  • John W. White

Partner, Corporate Department, Co-chair of the Corporate Governance and Board Advisory Practice, Cravath, Swaine & Moore, LLP

New York, N.Y

Term: 2010-2011

The PCAOB’s Standing Advisory Group meet 2 – 3 times a year.

Question :

  1. Review the most recent agenda for the SAG and briefly describe some of the key issues discussed during that meeting.

Answer :

The key issues in SAG meeting on October 14 – 15, 2009 which discuss about Communications with Audit Comittees are :

  • Roles and responsibilities of audit committees in overseeing auditors.

These requirements which established by the congress and the SEC specify that the audit committee is to be directly responsible for the appointment, compensation, retention, and oversight of the work of any registered public accounting firm employed by the issuer (including resolution of disagreements between management and the auditor regarding financial reporting) for the purpose of preparing or issuing an audit report or related work, and each such registered public accounting firm must report directly to the audit committee.

The SEC also requires the audit committee to include a statement in the proxy statement6/ that it has:

–       Discussed the audited financial statements with management.

–       Discussed with the auditors the matters required by Statement on Auditing Standards (“SAS”) No. 61, as amended (AICPA, Professional Standards, Vol. 1 AU sec. 380 [as adopted by the PCAOB in Rule 3200T].

–       Received from and discussed with the auditors the written disclosures and the letter from the auditors required by the PCAOB concerning the auditor’s independence.

–       Recommended to the board of directors that the audited financial statements be included in the company’s annual report on Form 10-K.

  • Auditor responsibilities to communicate with the audit committee.

Communication by the auditor with the audit committee required Auditor’s responsibility, Significant accounting policies, Management judgments and accounting estimates, Audit adjustments, Auditor’s judgments about the quality of the entity’s accounting, Other information in documents containing audited financial statements, Disagreements with management, Consultation with other accountants, Major issues discussed with management prior to retention, Difficulties encountered in performing the audit.

The key issues in SAG meeting on October 14 – 15, 2009 which discuss about Related Parties are :

  • Assessing the Risks Associated with Related Party Transactions.
  • Financial Relationships with Management.
  • Identifying Undisclosed Related Party Transactions and Relationships.
  • Considering Other Relationships That Might Pose Risks Similar to Related Party Transactions.
  • Management Assertions Regarding Equivalency with Arm’s-Length Terms.

Source :

http://www.pcaobus.org/Standards/Standing_Advisory_Group/Biographies.aspx

http://www.pcaobus.org/News_and_Events/Events/2009/10-14_15.aspx


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