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Comment Letter

Auditing Accounting Estimates and Fair Value Measurements – A Framework

Tuesday, December 1, 2015

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This framework represents a collaborative effort by members of the profession to provide the Public Company Accounting Oversight Board (PCAOB) with our views as it relates to the current standard-setting projects of the Board on auditing accounting estimates and fair value measurements as well as the use of specialists. This expands upon the views expressed in our comment letters to the PCAOB in response to recent Staff Consultation Papers (Staff Consultation Paper, Auditing Accounting Estimates and Fair Value Measurements, and Staff Consultation Paper 2015-01, The Auditor’s Use of the Work of Specialists) regarding these same topics. As stated in those letters, the CAQ is supportive of enhancements to the auditing standards related to accounting estimates that align with the PCAOB’s risk assessment standards, promote audit quality by narrowing, or at least not expanding, any potential stakeholders’ expectation gaps, and allow for auditors of entities of all different sizes to be able to apply the requirements consistently, while providing for flexibility in approaches.