The Public Company Accounting Oversight Board (PCAOB) in the US has issued a Staff Audit Practice Alert to inform auditors of public companies about potential implications on reviews of interim financial information and annual audits of three recently-issued Financial Accounting Standards Board Staff Positions.
The recently-issued FSPs that are the subject of this alert are (as issued by FASB on 9 April 2009)
- FSP FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly
- FSP FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments
- FSP FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments
The PCAOB alert is intended to remind auditors of their responsibilities in conducting reviews of interim financial information and annual audits in light of the new FSPs related to fair value measurements and other-than-temporary impairments.
The Staff Audit Practice Alert discusses the following matters:
- Reviews of interim financial information
- Audits of financial statements, including integrated audits
- Disclosures
- Auditor reporting considerations