20 March 2018
The Public Company Accounting Oversight Board (PCAOB) has proposed major changes to the standard auditor’s report — the first time such changes have been proposed in over 70 years. Notably, the PCAOB’s proposed audit standards would require auditors to make disclosures concerning “critical audit matters”, which are material issues and disclosures that involve complex auditor judgment.
In addition, auditors would need to identify their connection to financial statement disclosures. If the SEC approves the rules, the new standard will govern audits of fiscal years beginning after December 15, 2017.
For more information, see https://pcaobus.org/News/Releases/Pages/auditors-report-standard-adoption-6-1-17.aspx.