The PCAOB will meet Tuesday to consider proposing a new auditor’s reporting model as well as new auditor’s responsibilities for other information in an annual report that contains audited financial statements and the auditor’s report.
The contents of the auditor’s report have been the subject of significant activity by standard setters in recent months. The International Auditing and Assurance Standards Board last month proposed standards that would change international auditor reporting guidelines significantly and require more communication from auditors.
In June, the U.K. Financial Reporting Council issued a standard aimed at increasing the transparency of the auditor’s report.
Auditors’ reports in the United States have changed little since the 1940s, according to the PCAOB, which intends its proposal to enhance the usefulness of the auditor’s communication to those who rely on the auditor’s report.
The PCAOB has been working on changes to the auditor’s report for three years and in June 2011 issued a concept release to seek public comment on possible changes.
The open meeting Tuesday where the board will consider proposing the new standards and amendments will be available via webcast at the PCAOB’s site.
—Ken Tysiac (firstname.lastname@example.org) is a JofA senior editor.