Short Writing

"The Public Company Accounting Oversight Board adopted a new auditor reporting standard that will make the auditor's report more relevant to investors by requiring more information about the audit.

The standard includes the communication of critical audit matters (CAMs), which will inform investors and other financial statement users of matters arising from the audit that required especially challenging, subjective, or complex auditor judgment, and how the auditor responded to those matters." (PCAOB 2017)

I have attached the Fact Sheet from the June 1, 2017 PCAOB Press Release: PCAOB Adopts New Standard to Enhance the Relevance and Usefulness of the Auditor's Report with Additional Information for Investors:

https://pcaobus.org/News/Releases/Pages/fact-sheet-auditors-report-standard-adoption-6-1-17.aspx

I have also attached the Final Audit Standard - PCAOB Release No. 2017-001 June 1, 2017 PCAOB RulemakingDocket Matter No. 034 - to the assignment in TCU Online and provided the link below:

https://pcaobus.org/News/Releases/Pages/fact-sheet-auditors-report-standard-adoption-6-1-17.aspx

Please do brief, but thoughtful, note commenting on this topic.

What are the arguments for and against the additional disclosure? Do you think that the PCAOB made the right decision?

If you were a partner at a public accounting firm, would you be for or against the additional disclosure?

Why?

*You are not limited to the resources noted.

References:

Public Company Accounting Oversight Board (PCAOB). 2017, June. Fact Sheet: Adoption of an Auditing Standard on the Auditor's Report.June 1, 2017 Press Release Washington, D.C.: PCAOB

Retrieved from:

https://pcaobus.org/News/Releases/Pages/fact-sheet-auditors-report-standard-adoption-6-1-17.aspx

Public Company Accounting Oversight Board (PCAOB). 2017, June. PCAOB Release No. 2017-001. The Auditor's Report On An Audit Of Financial Statements When The Auditor Expresses An Unqualified Opinion And Related Amendments To PCAOB Standards. Washington, D.C.: PCAOB

Retrieved From:

https://pcaobus.org/News/Releases/Pages/fact-sheet-auditors-report-standard-adoption-6-1-17.aspx