SEC Approves PCAOB Proposed Rule on Auditing Standard No. 6
 
October 6, 2008
 

On September 16, 2008, the SEC issued an order approving the proposed rule on Auditing Standard No. 6, “Evaluating Consistency of Financial Statements, and Conforming Amendments,” which will supersede the PCAOB’s interim auditing standard on evaluating consistency, AU Section 420, “Consistency of Application of Generally Accepted Accounting Principles.” Auditing Standard No. 6 provides requirements and direction for an auditor’s evaluation of the consistency of financial statements (including changes to previously issued financial statements) and the effect of the evaluation on the auditor’s report on financial statements. The Conforming Amendments are generally technical or conforming in nature, however, the amendment to AU Section 411 removes the hierarchy for accounting principles generally accepted in the United States (US GAAP Hierarchy) from the PCAOB’s auditing standards. In the future, the US GAAP Hierarchy will be found in the Financial Accounting Standards Board Statement of Financial Accounting No. 162, “The Hierarchy of Generally Accepted Accounting Principles.”

http://www.sec.gov/rules/pcaob/2008/34-58555.pdf

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