PCAOB Proposes Significant Changes to Auditor's Reporting Model

Abstract

The Public Company Accounting Oversight Board (PCAOB) recently proposed significant changes to the audit report. These changes would impact the financial reporting and auditing process for companies' management, audit committees, and auditors. The proposals require auditors to disclose company‐specific critical audit matters and expand their evaluation of other information outside the audited financial statements. Could this change the fundamental nature of the audit process and increase audit costs, as some suggest?