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.
Applicability
AS 3101, PCAOB 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