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ARTICLE · 09 AUGUST 2017

PCAOB Adopts New Auditor Reporting Standard

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On 1 June 2017, the Public Company Accounting Oversight Board ("PCAOB") adopted new standard S 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion.

United StatesAccounting and Audit
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On 1 June 2017, the Public Company Accounting Oversight Board ("PCAOB") adopted new standard S 3101, The Auditor's Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion. This standard generally imports reporting elements that have become standard outside the United States in recent years and is intended to make auditor's reports, which have been substantially the same since the 1940s, more informative and relevant to investors. The new standard requires auditors to disclose in their report:

  • Critical audit matters, such as matters communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the financial statements, and (ii) involved especially challenging, subjective, or complex auditor judgment.

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