ASB Seeking Feedback on U.S. Auditor Reporting

The AICPA Auditing Standards Board (ASB) is requesting input from members and other stakeholders to help form its comments on the consultation paper, Enhancing the Value of Auditor Reporting: Exploring Options for Change (Consultation Paper), issued by the International Auditing and Assurance Standards Board.

The IAASB paper is aimed at gathering views from around the world on whether there is consensus about the need to enhance auditor reporting and, if so, how an enhanced reporting model might be achieved. It describes issues with current financial reporting, including a perceived “information gap” identified by some stakeholders. The paper also sets out possible options for change and seeks input in as to whether such options might be effective in narrowing the “information gap” or enhancing the communicative value of the auditor’s report.

The feedback will help the ASB better provide views to the IAASB that are specific to the U.S. and to help shape the direction of the ASB as it decides how to move forward with possible options for changes to the auditor’s report and to continue to meet its objective of harmonization with the International Standards on Auditing.

The PCAOB in June issued a concept release on possible changes to the auditor’s reporting model including the addition of an auditor’s discussion and analysis (AD&A), mandatory emphasis paragraphs, assurance on non-GAAP information and clarification of standard language.