PCAOB Staff Questions and Answers, Auditing the Fair Value of Share Options Granted to Employees (Part 1 of 2)

Georgiades, George; Puncel, Luis M.
January 2007
GAAS Update Service;1/30/2007, Vol. 7 Issue 2, p1
Trade Publication
This article gives an overview of the document "Auditing the Fair Value of Share Options Granted to Employees" issued by the U.S. Public Company Accounting Oversight Board (PCAOB) in October 2006. The document provides guidance on issues related to the implementation of the auditing standards of the PCAOB. The issues include: the auditor's evaluation of the company's process for estimating the fair value and the factors that affect the auditor's assessment of risk at the financial statement.


Related Articles

  • The Applicable PCAOB Auditing Standards That Provide Direction on Auditing the Fair Value of Employee Share Options and the General Steps Involved in Auditing Them. Georgiades, George; Puncel, Luis M. // GAAS Update Service;1/30/2007, Vol. 7 Issue 2, p3 

    This article deals with the auditing standards from the U.S. Public Company Accounting Oversight Board that provide direction on auditing the fair value of employee share options. The board observes that grant-date fair values of option grants are accounting estimates. The duties of the auditor...

  • New Standards to Assess Risks. Clemmons, D. // Internal Auditor;Dec2008, Vol. 65 Issue 6, p16 

    The article presents information on new audit standards proposed by the U.S. Public Company Accounting Oversight Board (PCAOB). The proposed PCAOB standards include; Audit Risk in an Audit of Financial Statements; Audit Planning and Supervision; Identifying and Assessing Risks of Material...

  • PCAOB warns auditors on option accounting risks.  // Accounting Today;9/4/2006, Vol. 20 Issue 16, p14 

    The article reports on the issuance of the inaugural audit practice alert by the U.S. Public Company Accounting Oversight Board that advises auditors to focus on the problems with the timing and accounting for stock option grants. There is a possibility that the grants are not properly accounted...

  • Restating Restatements.  // Treasury & Risk;Mar2008, p10 

    The article reports on the adoption of Auditing Standard No. 6 by the Public Co. Accounting Oversight Board (PCAOB) in the U.S. in February 2008. It states that if approved, the standard will require auditors to state clearly in their note at the end of company reports whether any correction of...

  • Reducing SOX Section 404 Compliance Costs Via a Top-Down, Risk-Based Approach. O'Brien, Patrick // CPA Journal;Aug2006, Vol. 76 Issue 8, p36 

    The article focuses on the application of the top-down, risk-based approach for testing the effectiveness of internal controls. The top-down approach enables the auditor to focus early in the process on matters that may have an effect on the auditor's later decisions about scope and testing...

  • Mandatory Firm Rotation and Partner Signing. Bergner, Jason // CPA Journal; 

    The article tackles several issues on two concept releases issued by the Public Company Accounting Oversight Board proposing new auditing standards aimed at improving audit quality. The mandatory firm rotation requirement is designed to increase independence by preventing auditors from...

  • A Fresh Look at Walkthroughs. Hubbard, Larry D. // Internal Auditor;Dec2004, Vol. 61 Issue 6, p25 

    Details the Auditing Standard No. 2 (AS2), an audit of internal control over financial reporting performed in conjunction with an audit of financial statements of the U.S. Public Company Accounting Oversight Board (PCAOB). Discussion of the concept of walkthrough; Critical information on...

  • PCAOB approves new auditing standard.  // Accounting Today;2/25/2008, Vol. 22 Issue 4, p4 

    The article reports on the approval of the Auditing Standard No. 6, Evaluating Consistency of Financial Statements by the Public Company Accounting Oversight Board (PCAOB). The approved standard requires auditors to specify the reasons for the changes made on financial statements. It updates the...

  • A Summary of Research on External Auditor Reliance on the Internal Audit Function. Bame-Aldred, Charles W.; Brandon, Duane M.; Messier Jr., William F.; Rittenberg, Larry E.; Stefaniak, Chad M. // Auditing: A Journal of Practice & Theory;2013 Supplement 1, Vol. 32, p251 

    Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 5 (AS5) allows external auditors (EAs) to rely on the internal audit function (IAF) when the internal audit activities meet certain criteria and the EAs would find efficiencies in relying on their work (PCAOB 2007). This...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics