PCAOB issues staff guidance on auditing estimates, specialists

By Ken Tysiac

The PCAOB released four staff guidance documents Thursday that are designed to help auditors implement the board’s new standards and amendments on auditing accounting estimates and the auditor’s use of the work of specialists.

The new standards will take effect for audits of financial statements for fiscal years ending on or after Dec. 15, 2020.

The staff guidance issued Thursday is contained in the following documents:

The accounting estimates and fair value documents provide information on the PCAOB’s new standard for auditing accounting estimates and highlight changes made to integrate the PCAOB’s risk assessment requirements when auditing accounting estimates, including fair value measurements.

The other two documents highlight aspects of new requirements that apply when auditors use the work of specialists in an audit and when an auditor uses the work of a company specialist as audit evidence.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

SPONSORED REPORT

2019 State of Financial Reporting Survey

We surveyed nearly 600 finance and accounting professionals on their month-end close and reporting processes. See the results.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.