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 aicpa.org.

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

SPONSORED REPORT

How to make the most of a negotiation

Negotiators are made, not born. In this sponsored report, we cover strategies and tactics to help you head into 2017 ready to take on business deals, salary discussions and more.

VIDEO

Will the Affordable Care Act be repealed?

The results of the 2016 presidential election are likely to have a big impact on federal tax policy in the coming years. Eddie Adkins, CPA, a partner in the Washington National Tax Office at Grant Thornton, discusses what parts of the ACA might survive the repeal of most of the law.

QUIZ

News quiz: Scam email plagues tax professionals—again

Even as the IRS reported on success in reducing tax return identity theft in the 2016 season, the Service also warned tax professionals about yet another email phishing scam. See how much you know about recent news with this short quiz.