The PCAOB recently proposed a new auditing standard that would update the requirements of the auditor’s confirmation process.
A new auditing standard would replace an interim standard for auditor confirmations that has not changed substantially since 2003.
The proposed standard includes principles-based requirements that would apply to all methods of confirmation, including paper-based and electronic communications, the PCAOB said.
The proposal, if adopted, would also better integrate the PCAOB’s confirmation standard with its risk assessment standards by incorporating certain risk-based considerations and emphasizing the auditor’s responsibilities for obtaining relevant and reliable audit evidence through the confirmation process. See the key changes.
The PCAOB seeks public comment on the proposed standard by Feb. 20.