Why change the auditor's report?
This page was published as a companion piece to the reproposal in May 2016.
Investors asked for more information about the audits of public companies. The current auditor's report has gone largely unaltered for 70 years, while public companies and their audits have become increasingly complex. The PCAOB invited public comment on a reproposal to enhance the auditor's report issued.
Download the PCAOB release to learn more about the proposed enhancements to the auditor's report.
What is a critical audit matter?
The reproposed standard would require auditors to communicate in the auditor’s report the critical audit matters arising from an audit of a company’s financial statements. When would an audit matter become a critical audit matter?
Additional resources and information
PCAOB's reproposal was discussed at the May 18, 2016, Standing Advisory Group meeting. The Standing Advisory Group includes investors, auditors, public company executives, and others.
PCAOB staff described the reproposal at this open Board meeting. The meeting included Board member statements, as well as questions from Board members and PCAOB staff answers.
Public comments are made available on the PCAOB website.
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