United States

Proposed changes to the auditor’s reporting model for audits of public companies

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The Public Company Accounting Oversight Board (PCAOB) has issued a proposed auditing standard, which, if finalized, would require the most significant changes to the auditor's report for audits of public companies since the 1940s. The PCAOB also has proposed an additional new standard that would substantially expand the auditor's responsibilities related to other information contained in the annual report for public companies. Although the PCAOB's proposed revisions can be viewed as primarily presenting issues the auditor must address, the nature of the amendments also will require important changes for public companies and for the users of their financial statements. This special edition of Financial Reporting Insights provides a summary of the proposed standards and a few of our observations.