PCAOB staff provides guidance for new requirements

Aug 23, 2019

The Public Company Accounting Oversight Board (PCAOB) in the US released four staff guidance documents to raise awareness and assist auditors in advance of the effective date of new estimates and specialists audit requirements. The requirements are effective for audits of financial statements for fiscal years ending on or after 15 December 2020. 

The staff guidance consists of:

The first two documents highlight aspects of the new standard and enhancements made to integrate the Board’s risk assessment requirements when auditing accounting estimates, including fair value measurements. The other two documents highlight aspects of new requirements that apply when auditors use the work of specialists in an audit and when an auditor uses the work of a company specialist as audit evidence. 

As outlined on the implementation webpages for the new estimates standard and amendments for the auditor’s use of the work of specialists, the PCAOB is utilising a variety of avenues to provide useful information to auditors. The Board and staff will continue to monitor firms’ implementation efforts and determine if further guidance is needed. 

Source: PCAOB