| Popis: |
In May 2016, the PCAOB proposed some of the most significant changes to the audit report since the report was adopted in the 1940s. Among other things, the changes would require auditors to disclose within the audit report CAMs, which are matters that are communicated to the audit committee and that involved especially challenging, subjective, or complex auditor judgement. Although the PCAOB’s latest proposal is not final, the changes are similar to standards already adopted by the IAASB. Additionally, PCAOB Chairman James R. Doty indicated that he thought the latest proposal was “the right approach” and that final rules should be adopted “soon”. This article provides a timeline of the PCAOB’s proposed changes, as well as the changes implemented by the UK and IAASB, discusses changes contained within the PCAOB’s latest proposal, and compares those changes to the IAASB’s standards. We also discuss recent research regarding this topic. Last, we summarize comments on the PCOAB’s latest proposal and outline steps that management and auditors need to take to prepare themselves for when the final standards take effect. © 2017 Wiley Periodicals, Inc. |
