This document discusses standard setting for smaller entities from a US perspective. It notes that in the US there is no audit threshold for non-issuers and listed entities, and that standard setting involves multiple bodies, including the PCAOB, AICPA, and GAO. For SMPs, this can pose challenges as they often serve clients under different standards. The document also outlines how SMPs provide input to the standard setting process in the US through organizations like the AICPA.

1. Standard Setting for Smaller
Entities – a US Perspective
Brian Bluhm
Deputy Chair, SMP Committee
IFAC SMP Forum
Singapore
March 19, 2012
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2. US Standard Setting Environment
• No audit thresholds for non-issuers/listed entities
• Multiple standard-setting bodies
• Increasing amount of attention paid to SMPs/SMEs
– Auditing standards – adoption of ISA Clarity format
– Accounting standards – recommendation of Blue Ribbon Panel
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3. SMP Challenges
• Multiple Standard Setting Bodies
– Public Company Accounting Oversight Board – Listed Entities
– American Institute of Certified Public Accountants (AICPA)
• Auditing Standards Board – Private company auditing/attestation standards
• Accounting and Review Services Committee – Private company review and
compilation standards
– Government Accountability Office – Governmental entity auditing
standards
• Challenge for SMPs
– Many SMPs serve two or more of these types of clients
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4. SMP Input to Standard Setting
• AICPA
– Following the lead of the IAASB
• Adoption of ISA clarity format
• Discussion of methods to monitor implementation
– Practitioner input – Technical Issues Committee
– SMP Representation
• Standard setting bodies
• Project task forces
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5. www.ifac.org