PCAOB Reproposes Standard to Enhance the Auditor’s Report for Investors with Refined Requirements for Critical Audit Matters
May 11, 2016
On May 11, 2016, the Public Company Accounting Oversight Board reproposed for public comment the auditor reporting standard to enhance the auditor's report to make it more informative for investors by requiring auditors to provide information on critical audit matters.
The Board is reproposing the auditor reporting standard, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, and related amendments to certain other PCAOB standards.
The revised proposal would retain the pass/fail model in the existing auditor's report, but would provide additional information in the report, such as the communication of critical audit matters arising from the audit and new elements related to auditor independence and auditor tenure.
Comments on the proposed standards and related amendments are due by August 15, 2016.
Review the press release on the PCAOB's Web site.
