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ASB Looks to Amend Auditor’s Report Auditing Standard

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Aug 17th 2015
Staff Writer and Editor AccountingWEB
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The American Institute of CPAs' (AICPA) Auditing Standards Board issued an exposure draft on Aug. 14, which proposes amendments to guidance for reporting on an audit conducted in accordance with both Generally Accepted Auditing Standards (GAAS) and the standards of the Public Company Accounting Oversight Board (PCAOB).

The comment period on the exposure draft – Proposed Statement on Auditing Standards, Amendment to SAS No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements – ends on Sept. 30. Written responses should be sent to Sherry Hazel at [email protected].

When an auditor conducts an audit in accordance with PCAOB standards and the audit is not within the jurisdiction of the PCAOB, the proposed amendments would:

  • Clarify that the AICPA Code of Professional Conduct requires the auditor also to comply with GAAS in the conduct of the audit.
  • Require that when the auditor plans to refer to PCAOB standards in addition to GAAS in the auditor's report, the auditor should use the report layout and wording specified by the PCAOB's auditing standards, amended to indicate that the audit also was conducted in accordance with GAAS.

The proposed Statement on Auditing Standards would be effective for audits of financial statements for periods ending on or after Dec. 15, 2015.

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