The Public Company Accounting Oversight Board (PCAOB) issued new guidance on auditing standard AS 3101, which is meant to enhance the relevance and usefulness of the auditor’s report by providing important information to investors and other financial statement users. The standard is effective for audits of fiscal years ending on or after Dec. 15, 2017.
The new guidance elaborates on the original guidance issued Dec. 28, 2017, and provides insight into how to disclose the auditor’s tenure. It addresses voluntary disclosures auditors might choose to make about audit participants. The update also gives auditors some direction on audit reporting regarding internal control over financial reporting, the use of explanatory or emphasis paragraphs and other reporting situations that could occur.