PCAOB Proposes Standard on Related Parties

Contact: KMJ Corbin & Company (Costa Mesa, California, USA)

The PCAOB has issued for public comment a proposed auditing standard, Related Parties. The PCAOB believes the proposed standard would improve the auditor's evaluation of a public company's identification

of, accounting for, and disclosure about its relationships and transactions with related parties.   The PCAOB also is proposing amendments to enhance the auditor's identification and evaluation of a company's significant unusual transactions, which are significant transactions that are outside the normal course of business or that otherwise appear to be unusual due to their timing, size, or nature. In addition, the PCAOB is proposing amendments that, among other things, would improve the auditor's understanding of a company's financial relationships with its executive officers.  If you would like to discuss how these proposed standards could affect your audit, contact KMJ. Click here to read entire article.