The Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA) has issued three exposure drafts on auditing standards which, if approved, will create a new structure for the auditor’s report for all audits of financial statements for non-issuers.

The ASB created the drafts in order to reinforce the relevance and usefulness of the auditor’s report and considered reporting projects that have been released by both the International Auditing and Assurance Standards Board (IAASB) and the Public Company Accounting Oversight Board (PCAOB). Although the proposals intend to converge with the IAASB’s International Standard on Auditing the ASB undertook its separate project in order to assess the implications of the developments on auditors’ reports issued for audits of non-issuers.

  • Auditor Reporting and Proposed Amendments?Addressing Disclosures in the Audit of Financial Statements plans to revise and expand the auditors report, aligning it with guidance from the IAASB. The draft proposes a new auditing standard, Communicating Key Audit Matters in the Independent Auditor’s Report, and proposes to amend and supersede sections in AICPA Professional Standards.
  • The Auditor’s Responsibilities Relating to Other Information Included in Annual Reports aims to bring consistency to other information in annual reports by revising standards and reducing diversity in practice. 
  • Omnibus Statement on Auditing Standards—2018, focuses on aligning generally accepted auditing standards with two PCAOB standards: Auditing Standard Communication With Audit Committees and Related Parties.

The three exposure drafts are expected to take effect for audits of financial statements for periods ending on or after 15 June 2019.

Comments on the exposure drafts are requested by 15 May 2018.

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