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Updated guidance highlights key changes in the auditor’s report

  • PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

Aug 23, 2018

On August 23, 2018, the Public Company Accounting Oversight Board (PCAOB) updated staff guidance issued by the PCAOB provides practitioners with information on Auditing Standard 3101, "The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion".

The updates build on previous guidance that was issued on December 28, 2017. Issues addressed in the update include:

  • New information in the annotated example of an auditor’s report on voluntary disclosure about certain audit participants in the audit.
  • A footnote on determining auditor tenure for employee benefit plans.
  • Examples of company filings that could be used to determine auditor tenure.
  • Guidance regarding uncertainty about the specific year for auditor tenure.
  • Guidance on auditor tenure reporting by predecessor auditors.
  • Guidance on reporting when audits of internal control over financial reporting are required by other regulators.
  • Guidance on reporting auditor tenure in a separate auditor’s report on internal control over financial reporting.
  • Guidance on the location of explanatory paragraphs in the auditor’s report.
  • Examples of what might be included in emphasis paragraphs.
  • Information on the voluntary disclosure of the engagement partner and other accounting firms participating in the audit.
  • Guidance on auditor reporting on supplemental information, interim financial information, and special reports.

Review the staff guidance on the PCAOB's website and an article on the Journal of Accountancy's website.

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