On 23 October 2017, the Securities and Exchange Commission (“SEC” or “Commission”) approved the Public Company Accounting Oversight Board (PCAOB) auditing standard which makes significant form and content enhancements to certain public company audit reports to include additional information about the audit. These changes are intended to make the auditor’s report more informative. Certain changes are effective for auditor’s reports for audits of fiscal years ending on or after 15 December 2017. In addition, starting in 2019 for certain audits, auditors will be required to communicate critical audit matters (CAMs) in their reports.
Contributing Author: Aaron Shmalo, Manager in Risk & Transaction Advisory