AS 1000 enhances and consolidates a group of standards that the PCAOB adopted on an interim basis in April 2003 and that address the general principles and responsibilities of the auditor, such as due professional care, professional skepticism, competence, and professional judgment. Merging these foundational standards into one standard enhances investor protection by reaffirming the general principles and responsibilities of the auditor and solidifying the foundation of every audit.

 Key Provisions of the New Standard and Related Amendments:

• The new standard streamlines and modernizes auditors' general principles and responsibilities, enhancing usability without creating new principles. It reaffirms the auditor’s responsibility to investors, providing a foundation for an objective and independent audit.
• It clarifies the auditor’s responsibility for evaluating if financial statements are “presented fairly” in conformity with the applicable financial reporting framework.
• The role and responsibilities of the engagement partner are further specified, distinguishing between the duties applicable to all auditors and those specific to engagement partners.
• The documentation completion period is reduced from 45 to 14 days, limiting opportunities for improper alteration of audit documentation and potentially accelerating the inspection process.
• The standard also clarifies that an auditor’s professional skepticism extends to other information obtained to comply with PCAOB standards and rules, emphasizing that this skepticism is exercised throughout the audit process.

The new standard and related amendments will take effect for audits of financial statements for fiscal years beginning on or after December 15, 2024, subject to approval by the Securities and Exchange Commission.

Access the new standard on the PCAOB’s website.