SEC Looks for Comments on New Audit Standard

The Securities and Exchange Commission is soliciting comments on a new auditing standard for evaluating the consistency of financial statements.

The Public Company Accounting Oversight Board adopted Auditing Standard No. 6 and an accompanying set of amendments in late January (see PCAOB Approves Auditing Standard). AS 6 and the related amendments update and clarify the auditor's responsibilities to evaluate and report on matters relating to the consistency of the financial statements and align the auditor's responsibilities with FASB Statement No. 154.

AS 6 also enhances auditor reporting on accounting changes and corrections of misstatements by more clearly distinguishing between these events. The text of the SEC's notice can be viewed here.

The comment period ends on Aug. 26. AS 6 and the related amendments will go into effect 60 days after SEC approval.