Defining Issues | June 2017

PCAOB issues auditing standard to enhance auditor’s report

KPMG reports on the new PCAOB auditing standard, AS 3101. This new standard represents the most meaningful change to the auditor’s report since the 1940s.


AS 3101PCAOB Release No. 2017-001

Statement on SEC Approval dated October 23, 2017

  • A company that is subject to PCAOB audit requirements, with certain limited exceptions

Relevant dates


CAM requirements

Effective date:

Large accelerated filers

All other filers

All other requirements

Fiscal years ending after

June 30, 2019

December 15, 2020

December 15, 2017

Early adoption allowed? Yes, once the SEC has approved the new standard.

Key impacts

The new standard is intended to enhance the auditor’s reporting model by:

  • Requiring the auditor to communicate critical audit matters (CAMs)
  • Adding new elements related to the auditor’s independence and tenure
  • Enhancing certain standardized language
  • Standardizing the form of the auditor’s report

Report contents

  • Applicability
  • Key facts and impacts
  • Critical audit matters
  • Elements of the auditor’s report
  • Enhanced standard language
  • Standardizing the form of the auditor’s report
  • Effective dates



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