ASB Proposes Amending Auditor’s Report Auditing Standard

The American Institute of CPAs' Auditing Standards Board has issued a new exposure draft proposing amendments to the auditing standard on auditor’s reports.

In circumstances where an auditor conducts an audit in accordance with Public Company Accounting Oversight Board standards and the audit is not within the jurisdiction of the PCAOB, Proposed Statement on Auditing Standards, Amendment to SAS No. 122 Section 700, Forming an Opinion and Reporting on Financial Statements (AICPA, Professional Standards, AU-C sec. 700) would:

• Clarify that the AICPA Code of Professional Conduct requires the auditor also to comply with generally accepted auditing standards in the conduct of the audit; and,
• Require that when the auditor plans to refer to PCAOB standards in addition to GAAS in the auditor’s report, the auditor should use the report layout and wording specified by the PCAOB’s auditing standards, amended to indicate that the audit also was conducted in accordance with GAAS.

Comments are due by September 30.