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:
- Auditing Accounting Estimates.
- Auditing the Fair Value of Financial Instruments.
- Supervising or Using the Work of an Auditor’s Specialist.
- Using the Work of a Company’s Specialist.
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.