On August 15, 2012, the PCAOB adopted Auditing Standard 16 (AS 16), which prescribes the required auditor communications in connection with the issuance of an audit report, and applied the new standard to emerging growth companies (EGCs). (Read our earlier post on AS 16.) Today the SEC approved AS 16 as proposed, including its application to EGCs. AS 16 is the first PCAOB standard adopted since the enactment of the JOBS Act. In order to apply AS 16 to EGC audits, the SEC was required to find that doing so is necessary or appropriate in the public interest, after considering the protection of investors and whether the action will promote efficiency, competition and capital formation.
The SEC made these findings, as discussed here.