New PCAOB rule: Keep us in the loop
Firms that fall under the watchful eye of the Public Company Accounting Oversight Board have some new rules to follow.
Beginning on Oct. 12, 2009, firms will have 30 days to alert the PCAOB on a wide range of events, "from administrative matters such as changes in a firm's contact information to more substantive matters, including, for example, the institution of certain types of legal proceedings against a firm or its personnel," the PCAOB reported.
The rules, which were approved on Aug. 13 by the SEC, are "the first reporting obligations imposed on registered firms by the PCAOB," according to a PCAOB statement.
"Adoption of these rules will put into effect an important provision of the Sarbanes-Oxley Act and increase transparency regarding firms registered with the PCAOB, including auditors of public companies and broker-dealers," said acting PCAOB Chairman Daniel L. Goelzer.
There's that word again -- transparency.
Everyone wants it these days. Considering what this country is going through, more transparency certainly can't hurt.
Want to find out more about what's new at the PCAOB? Don't miss "Public Company Audit Update: PCAOB Developments." The Oct. 19 program takes a closer look at the ever-changing requirements for audits of public companies.