PCAOB publishes guidance related to Audit Evidence amendments

The PCAOB released new guidance featuring illustrative examples to help audit firms implement AS 1105, Audit Evidence.

The guidance applies to requirements in paragraph .10A of Audit Evidence that were published in 2024 and become effective for fiscal years beginning on or after Dec. 15, 2025. According to the PCAOB, the guiding examples should be read in conjunction with the new requirements and a PCAOB policy statement issued in mid-September.

According to a news release that accompanied the policy statement, paragraph .10A, “Evaluating the Reliability of External Information Provided by the Company in Electronic Form,” requires auditors to evaluate the reliability of company-provided external electronic information by:

• Obtaining an understanding of the source and of the company’s process for receiving, maintaining, and processing the information; and
• Testing the information or the relevant controls. Paragraph .10A does not prescribe the nature, timing, or extent of procedures. Instead, the requirements are principles-based and scalable.

During the rulemaking process, commenters requested implementation guidance on paragraph .10A,

particularly with respect to paragraph .10A(b)’s testing requirements. The policy statement describes certain circumstances in which the PCAOB will not treat the absence of separate testing under paragraph .10A(b) as noncompliance with PCAOB auditing standards.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.