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 WHITE PAPER

Preparing the statement of cash flows

This instructive white paper outlines common pitfalls in the preparation of the statement of cash flows, resources to minimize these risks, and four critical skills your staff will need as you approach necessary changes to the process.

RESOURCES

Keeping you informed and prepared amid the COVID-19 crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.