Project History: Amendments Related to Aspects of Designing and Performing Audit Procedures That Involve Technology-Assisted Analysis of Information in Electronic Form

Objective

Consider how PCAOB standards should be revised to address aspects of designing and performing audit procedures using technology-assisted analysis of information in electronic form.

Most Recent Action

Adopted amendments to AS 1105, Audit Evidence and AS 2301, The Auditor’s Responses to the Risks of Material Misstatement related to aspects of designing and performing audit procedures that involve technology-assisted analysis of information in electronic form.

In brief, the Board’s amendments: 

• Specify considerations for the auditor’s investigation of items identified when performing tests of details;
• Specify that if the auditor uses an audit procedure for more than one purpose the  auditor should achieve each objective of the procedure;
• Specify auditor responsibilities for evaluating the reliability of external information provided by the company in electronic form and used as audit evidence;
• Emphasize the importance of controls over information technology;
• Clarify the description of a “test of details”;
• Emphasize that the relevance of audit evidence depends on the level of disaggregation or detail of information necessary to achieve the objective of the audit procedure; and
• Update certain terminology in AS 1105 to reflect the greater availability of information in electronic form and improve the consistency of the use of such terminology throughout the standard.
  

Background

The amendments were informed by the PCAOB’s ongoing research project on Data and Technology. They update AS 1105 and AS 2301, to more specifically address certain aspects of designing and performing audit procedures that involve technology-assisted analysis. This includes areas where PCAOB oversight activities have identified instances of noncompliance with PCAOB standards and areas where auditors have raised questions during our research regarding the applicability of PCAOB standards to the use of technology-assisted analysis.

Status

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