ASB proposal would amend standard on auditor’s report

Guidance affects audits conducted in accordance with both GAAS and PCAOB standards.

The AICPA Auditing Standards Board proposed amendments to provide requirements and guidance for reporting on an audit conducted in accordance with both generally accepted auditing standards (GAAS) and PCAOB standards.

When an auditor conducts an audit in accordance with PCAOB standards and the audit is not within the jurisdiction of the PCAOB, the proposed amendments would:

  • Clarify that the AICPA Code of Professional Conduct requires the auditor also to comply with GAAS in the conduct of the audit.
  • Require that when the auditor plans to refer to PCAOB standards in addition to GAAS in the auditor's report, the auditor should use the report layout and wording specified by the PCAOB's auditing standards, amended to indicate that the audit also was conducted in accordance with GAAS.

The proposal is the subject of an exposure draft, Proposed Statement on Auditing Standards, Amendment to SAS No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements.

An illustration and application material, including examples of entities that are not within the jurisdiction of the PCAOB, are included in the ED. Details on the proposed amendments are available at

Comments are being accepted until Sept. 30. They should be sent to Sherry Hazel at


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