Overview

In regulating the public accounting industry in the United States the Public Company Accounting Oversight Board (PCAOB) serves three major functions: setting auditing standards, inspecting registered public accounting firms and enforcing auditing standards. In this assignment, you will be focusing your writing on the process involved with setting audit standards.

Current Standard-Setting Activities: http://pcaobus.org/Standards/Pages/CurrentStatus.aspx

Research Question: Do you consider the PCAOB standard setting process to be an efficient and effective one? Select a standard that has been adopted in the past 3 years and use it as a platform for your discussion.

• Introduction (20 Points): See the accompanying outlining guide. Be sure to take a position in your introduction.
• Body Paragraph 1 (20 Points) Provide a detailed background on the standard setting process. Where does it begin? Who initiates it? Who are all of the players involved? How long does the standard take to be adopted (from concept release to final adoption of the standard)? Review several recently adopted standards to get an understanding of how it works. Feel free to cite any of the standards if it facilitates your discussion of the process. Also read the PDF file on blackboard describing the process so you have a broad understanding of what you are talking about.
• Body Paragraph 2, 3.. (40 Points): Depending on your position, discuss the strengths and/or weaknesses in the process. For example, if the standard you selected took 5 years between concept release and adoption, is this efficient or effective? Are there enough eyes on the standards being adopted? Are the standard setters held accountable to the public’s opinion? Does the public have any say? Cite at least 3 different comment letters and at least 3 statements from board members in your discussion on the standard you selected. Do the board members seem reactive to the public’s concerns?
• Conclusion (20 points): Restate and recap. Similar to the introduction, see the accompanying outlining guide.
• Quality of Writing (100 Points):
• Total = 100 points

Format

• Length: Not to exceed 1,200 words
• Margins: 1” (Left justification ONLY).
• Font: Times New Roman, 12 point.
• Headings and Subheadings: Please use them as appropriate.
• Page Numbers: At the bottom of your page, with the first page of your writing holding the first page number.
• APA Format Citations: There are numerous resources online that you can find in order to properly cite any outside information.

Other Instructions

• Do not use lists, bullet points, contractions or the second person (e.g., “you”) in your writing.
• Use passive voice sparingly.

References (APA Format)
You must provide proper citations for all references used to avoid plagiarism. Any direct quotes must be indicated as such. NOTE: Wikipedia.com and blogs do NOT count as references. Include references in your paper using the author/year parenthetical citation method with the full citation listed in the reference section (i.e., do not use footnotes to list your references). Please see the accompanying APA guide if you are having trouble. A wealth of excellent resources exists at your disposal. I encourage you to use popular and business press articles (New York Times, Wall Street Journal, Financial Times, Business Week, The Economist, etc.) practitioner journals (Journal of Accountancy, CPA Journal, Accounting Today, etc.) and academic journals (The Accounting Review, Accounting Horizons, Auditing, etc.) to inform your research.

Other Instructions

• Do not use lists, bullet points, contractions or the second person (e.g., “you”) in your writing.
• Use passive voice sparingly.