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PCAOB reproposes changes to the auditor’s reporting model

  • PCAOB document (green) Image

May 12, 2016

The PCAOB has reproposed its auditor reporting standard, “The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.” Like the original proposal, the reproposal is intended to significantly enhance the auditor’s reporting model and retain the current “pass/fail” approach while increasing the amount of other information included in auditors’ reports.

The reproposal:

  • Includes a new required section of the auditor’s report describing critical audit matters (CAMs).
  • Narrows the definition of CAMs.
  • Excludes the following from the requirements related to CAMs: broker-dealers; investment companies other than business development companies; and employee stock purchase, savings, and similar plans.
  • Calls for the addition of new elements to the auditor’s report, including statements about the requirement of auditor independence and auditor tenure.

Comments on the reproposal are due by August 15, 2016. For more information, see Deloitte’s related journal entry as well as the reproposal, press release, and fact sheet on the PCAOB’s Web site.

Correction list for hyphenation

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