By unanimous vote, the new US Public Company Accounting Oversight Board (PCAOB) has decided not to delegate responsibility for setting auditing standards to the accounting profession but, rather, to set the standards itself. Heretofore, for over 60 years, the American Institute of CPAs has promulgated auditing standards in the United States. The Financial Accounting Standards Board will continue to set accounting standards. All auditors of public companies will need to follow PCAOB standards.

On an interim basis, compliance with existing generally accepted auditing standards is required. The PCAOB said its standard setting process will continue to involve participation, dialogue and open observation by a large and diverse group of participants. The PCAOB's auditing standards will include matters of quality control, professional ethics, and independence of auditors from companies whose financial statements they audit. Though the PCAOB has authority to regulate all auditors - American or foreign - of all public companies in the United States, the extent to which PCAOB auditing standards would apply to foreign auditors remains to be addressed. The PCAOB also voted to finance its operations by fees paid by publicly traded companies in proportion to their size. Auditing firms will also pay fees to fund the PCAOB's auditor registration system.

(Source : http://www.iasplus.com/index.htm)