State Board Report

June 2012

The Seventh Public Report of the Public Interest Oversight Board, which oversees international audit, ethics and education standards, has been posted online, reflecting a new oversight methodology based on the risk sensitivity of the groups it is monitoring. A more intense level of oversight is being given to the International Ethics Standards Board for Accountants (IESBA) because of the projects it has under development. NASBA Vice Chair Gaylen Hansen serves on the Consultative Advisory Board (CAG) to the IESBA.

The PIOB's report states: "The 2011 observations of IESBA meetings have shown that the balance between the views of practitioners and non-practitioners can be improved and that the board's awareness of ethical matters related to the public interest can be enhanced. Given the nature and complexity of the work the IESBA is pursuing in 2012, the ensuing CAG work, the sensitivity of the items included on the board's agenda, and the appointment of a new IESBA chair late in 2012 to become Chair in 2013, the PIOB has decided to adopt Oversight Model 2 (high intensity) in 2012, resulting in 100% direct observations."

The PIOB's first chair, Stavros Thomadakis, has concluded his term, having served since 2003, and been succeeded by Mr. Eddy Wymeersch. Representing the United States, Aulana Peters has concluded her term and Charles McDonough has taken her place on the 10 member board. The PIOB reaffirmed its belief that the rotation of CAG representatives after a maximum of nine years constitutes best practice. This is to "ensure fresh perspectives are continually brought into the CAG deliberations." Two exceptions to the proposed rotations for 2012-13 were requested, but after deliberation the PIOB decided that the exceptions were not warranted.

Related News