PCAOB to consider proposing new auditor’s reporting model

BY KEN TYSIAC
August 8, 2013

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 ( ktysiac@aicpa.org ) is a JofA senior editor.

PROFESSIONAL DEVELOPMENT: EARLY CAREER

Making manager: The key to accelerating your career

Being promoted to manager is a key development in a young public accountant’s career. Here’s what CPAs need to learn to land that promotion.

PROFESSIONAL DEVELOPMENT: MIDDLE CAREER

Motivation and preparation can pave the path to CFO

CPAs in business and industry face intense competition to land a coveted CFO job. Learn how to best prepare yourself for the role.

PROFESSIONAL DEVELOPMENT: LATE CAREER

Second act: Consulting

CPAs are using experience to carve out late-career niches. Learn how to successfully make a late-career transition to consulting, from CPAs who have done it.