PCAOB Wants to Improve Rules for Work of Specialists
Seeking to reinforce the applicable requirements for auditors that use the work of specialists in an audit, the Public Company Accounting Oversight Board (“PCAOB”) has issued the proposal, Proposed Amendments to Auditing Standards for Auditor’s Use of the Work of Specialists.
The proposal aims to advance investor protection by improving the requirements for reviewing the work of company specialists, and applying a risk-based method to assessing the work of a specialist hired by the auditor. Specialists are often hired or appointed by companies to offer information used in preparing financial statements, and their work is frequently used as audit evidence. Separately, auditors hire or appoint their own specialists to help obtain and review audit evidence.
Standards proposed to be amended are Audit Evidence (AS 1105) and Supervision of the Audit Engagement (AS 1201). In addition, the PCAOB proposes replacing and renaming its standard, Using the Work of a Specialist (AS 1210).
Comments are due Wednesday, August 30.