• Register
Return to: Home > News > Standards > PCAOB adopts new auditing standards and releases proposal on auditing accounting estimates

PCAOB adopts new auditing standards and releases proposal on auditing accounting estimates

The Public Company Accounting Oversight Board (PCAOB) has adopted new auditing standards and has released a proposal for consultation on auditing accounting estimates.

The new standards require auditors to include in the auditor's report a discussion of the critical audit matters, which are matters that have been communicated to the audit committee. These are related to accounts or disclosures that are material to the financial statements, and involve especially challenging, subjective, or complex auditor judgment. 

Under the new standard, the auditor's report will disclose, among other things, the tenure of an auditor, specifically, the year in which the auditor began serving consecutively as the company's auditor.

PCAOB chairman James Doty said: "The changes adopted today breathe life into the audit report and give investors the information they've been asking for from auditors. The USA also now joins many other countries in adopting an expanded audit report."

Earlier this month, the PCAOB issued for public comment a proposal to enhance the requirements that apply when auditing accounting estimates, including fair value measurements.

The proposal emphasises that auditors need to practice professional scepticism and pay more attention to potential bias when they audit accounting estimates.

The deadline for comment is 30 August; the proposal can be accessed here

Top Content

    Blockchain and the Big Four: does it deserve all the hype?

    Although still in its infancy, blockchain is one of the most talked-about technologies of 2018. Will the blockchain bubble burst, or will it live up to its reputation as the ‘new internet’? Eleanor Jerome investigates

    read more

    Malaysia: Ready to show its strength

    Recent changes have enhanced the quality of audit reports in Malaysia, giving the profession a welcome opportunity to demonstrate its value to clients. Paul Golden reports

    read more

    China: Regulating the Chinese dragon

    Harsh regulatory actions and looming US trade wars have been dampening expectations in a Chinese market still full of potential, finds Jonathan Minter

    read more

    Indigenous Australians: New checks and balances

    With fewer than 40 known qualified Indigenous Australian accountants, Jonathan Minter speaks to Shelley Cable from PwC Australia about how increasing this number is an important part of improving the financial literacy of Indigenous communities

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.