The PCAOB is seeking comments on newly issued requirements for auditing accounting estimates and fair value measurements and using the work of specialists, which has been increasing in both frequency and significance.
The new single standard sets forth a uniform, risk-based approach, emphasizing the need for auditors to apply professional skepticism, including addressing potential management bias, when auditing accounting estimates. The standard also provides more direction on addressing certain aspects unique to auditing fair values of financial instruments, including the use of pricing information from third parties, such as pricing services and brokers or dealers.
Comments on the new requirements should be submitted by June 10.