PCAOB Q&A on prior period adjustments
10 Jun 2006
The US Public Company Accounting Oversight Board has published a series of staff questions and answers related to adjustments to prior-period financial statements audited by a predecessor auditor.
Prior period adjustments may be required, for instance, for discontinued operations, retrospective application of a change in accounting principle, or the correction of an error in prior-period financial statements. If the prior-period financial statements that require adjustments were audited by a predecessor auditor, which auditor, the predecessor or the successor, should audit the adjustments to prior-period financial statements? Click to (PDF 60k).