PCAOB proposes standards to enhance auditor’s report 

August 23: The Public Company Accounting Oversight Board (PCAOB) recently proposed two new auditing standards and related amendments that are intended to enhance the auditor’s reporting model.

The new standards would:

  • Require communication in the auditor’s report of critical audit matters
  • Add new elements to, and enhance some standardized language in, the auditor’s report
  • Enhance the auditor’s responsibility with respect to other information outside the financial statements in annual reports (e.g., Form 10-K) by adding procedures for the auditor to perform in evaluating the other information based on relevant audit evidence obtained and conclusions reached in the audit
  • Require communication in the auditor’s report regarding the auditor’s responsibility for, and the results of, the auditor’s evaluation of the other information

The PCAOB intends that the proposed changes and additional requirements will provide more useful information in the auditor’s report and make the audit and the auditor’s report more relevant to investors.

Read an August 2013 report [PDF 170 KB] prepared by KPMG LLP: Defining Issues: PCAOB Proposes Two Auditing Standards to Enhance Auditor’s Report

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