PCAOB to Consider a New Auditing Standard to Enhance the Auditor's Reporting Model

The Public Company Accounting Oversight Board has scheduled an open meeting for 9:30 a.m. on Tuesday, Aug. 13, to consider proposing for public comment a new auditing standard and related amendments to enhance the auditor's reporting model.

In addition, the PCAOB will consider proposing a new auditing standard and related amendments to enhance the auditor's responsibilities (including reporting responsibilities) for other information in an annual report that contains audited financial statements and the auditor's report.

The auditor's report is the primary means by which the auditor communicates to investors and other financial statement users about the audit of the financial statements and it has changed very little since the 1940s. Since that time, the size and complexity of U.S. capital markets has greatly increased, and a greater percentage of American households invest their savings in the stock market than ever before.

This proposal is intended to enhance the usefulness of the auditor's communication to those relying on the audit report. The Board has conducted extensive outreach efforts over the last three years to investors, auditors, preparers of financial statements, audit committee members, and other interested parties. Many audit report users have said that they want more insightful information about the results of the audit.

In June 2011, the Board issued a related Concept Release to seek public comment on potential changes to the auditor's reporting model. Additionally, in September 2011, the Board held a public roundtable to obtain further insight on the alternatives presented in the concept release.

The meeting to consider proposing the two auditing standards and related amendments is open to the public and will take place in the Board's meeting room at 1666 K St. NW, Washington, DC.

A webcast via a link on the PCAOB website will be made available the day of the meeting. The meeting also will be available via podcast later in the day.