NASBA Meets with PCAOB

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NASBA Chair Janice L. Gray urged the Public Accounting Oversight Board members to make annual meetings with NASBA a recurring event, offering an opportunity to share ideas. The entire PCAOB Board, Chair William Duhnke III, Kathleen Hamm, J. Robert Brown, James Kaiser and Duane DesParte met with Ms. Gray, President & CEO Ken L. Bishop, Executive Vice President & COO Colleen K. Conrad and Vice President – Information & Research Louise Dratler Haberman on November 27 in Washington, DC. The NASBA team reported on the projects that NASBA has underway and asked about similar efforts in which the PCAOB has been engaged.

Among the topics touched upon were responding to the evolution of the profession, meeting anti-regulation challenges, mobility of professionals, international recognition and enforcement initiatives.

Ms. Hamm in a speech earlier last month had mentioned regulators creating a framework which would provide initial guideposts for potential applications of emerging technology. The NASBA team asked how this effort might progress. Ms. Hamm reported that a topic among regulators internationally is: Should regulators be out there validating systems? In the financial services area, regulatory concerns are currently being built into the software. According to the PCAOB’s surveys, its present standards are not impeding the use of advanced technology, Mr. Kaiser added.

The value that the Accountancy Licensee Database could bring to the PCAOB’s efforts was discussed. Licensee information is now listed by the individual’s name. For the PCAOB, listing by the firm would be very helpful. Ms. Conrad said she would look into how that might be accomplished. As required by the Sarbanes-Oxley Act of 2002, the PCAOB regularly submits reports of their sanctions to the appropriate State Boards. A PCAOB staff member reported that they do not always receive confirmation that the Boards have taken action on these cases. Ms. Conrad agreed to follow up on what might be happening to prevent timely responses from more Boards. It was pointed out that, in many states, no action would be taken while appellate action is still pending.

One of the PCAOB’s remaining projects from 2017 is the “Auditor’s Consideration of Noncompliance with Laws and Regulations.” The PCAOB is exploring whether there is a need for improvements to existing standards.