The SEC has voted to approve the PCAOB's new standard for audit confirmations, which updates a decades-old existing standard to recognize the use of technology for electronic confirmations.
The new standard sets principles-based requirements to stay relevant as technology evolves by applying to various methods of confirmation, including electronic and paper-based communications.
The new standard will also integrate better with the PCAOB's risk assessment standards. The standard will take effect for audits of financial statements for fiscal years ending on or after June 15, 2025.