PCAOB Reproposes Standard on Auditor Communications with Audit Committee

At its open meeting on December 20, 2011, the Public Company Accounting Oversight Board reproposed an auditing standard that would clarify and expand the requirements for auditor communications with audit committees. The standard as reproposed represents a significant improvement over the original 2010 proposal, which was criticized as potentially overwhelming audit committees with immaterial information and making the communications a “check-the-box” compliance exercise. In response, the PCAOB has tailored the reproposed standard to focus on communications that will facilitate audit committee oversight of the financial reporting process.