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ARTICLE · 13 NOVEMBER 2017

SEC Approves New PCAOB Auditing Report Standard

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On October 23, 2017, the Securities and Exchange Commission ("SEC") unanimously approved (the "Approval Release") the Public Company Accounting Oversight Board's ("PCAOB") proposal...

United StatesAccounting and Audit
John Patrick Clayton
John Patrick Clayton
Daniel F. Zimmerman
Daniel F. Zimmerman
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On October 23, 2017, the Securities and Exchange Commission ("SEC") unanimously approved (the "Approval Release") the Public Company Accounting Oversight Board's ("PCAOB") proposal to adopt a new auditing standard, AS 3101, The Auditor's Report on an Audit of Financial Statements When Auditor Expresses an Unqualified Opinion, and related amendments to other auditing standards. As discussed in the Approval Release, the PCAOB adopted the new standard in final form on June 1, 2017, subject to SEC approval, following a PCAOB concept release, proposal and reproposal process beginning in 2011.

The new standard will require auditors to provide additional information about the audit that is intended to make the auditor's report more informative and relevant to investors and other users of financial statements. While the new standard retains the pass/fail opinion of the existing auditor's report, it requires significant changes and additions as described below.

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