- The Audit Committee Working Group is now evaluating the concept and related requirements
- Support the mandatory comprehensive review concept
- Working on operationalizing, guidance and tools
- Preliminary draft completed, with a discussion paper anticipated late December 2012 or early January 2013
Non-audit services - Global proposals address further changes to non-audit services
- Consensus – Continue the Canadian principles-based/prohibition approach to non-audit services
- Recommends consideration of additional independence prohibitions for two of the three differences* between the Canadian and SEC/PCAOB prohibitions
- Recommends further study on the third item
* Differences are providing personal tax services for individuals in a financial reporting oversight role, aggressive and confidential tax transactions and providing non-audit services on a contingency fee basis.
Audit-only Firms - EC is the only body proposing audit-only firms
- Consensus – Audit-only firms were not supported
Other Audit Structures - Joint audits - Consensus – The IWG recommends the rejection of joint audits
- Discussion on this topic is limited in global proposals
- Canada previously had joint audits, and this requirement was removed. Reasons for the change included:
- The potential division of responsibility associated with the approach
- Concern that some issues would fail to get addressed
- The potential to create incentives for management to choose the opinion of the auditor that yields the most favourable result
- Concern that there could be less accountability, less auditor oversight, and diminished quality of the financial statements
Do'stlaringiz bilan baham: |