Updated guidance highlights key changes in the auditor’s report
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 Dec. 28, 2017. Issues addressed in the update include:
The new auditor’s reporting standard is designed to increase the relevance and usefulness of information that auditors provide to investors and other financial statement users. All the changes in the new standard, except those related to critical audit matters, take effect for audits of fiscal years ending on or after Dec. 15, 2017.
Auditor communication of critical audit matters will be required for audits of fiscal years ending on or after June 30, 2019, for audits of large accelerated filers or Dec. 15, 2020, for audits of all other companies affected by the requirements.
— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.
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