PracticeAuditPCAOB wants clarification of audit restatements

PCAOB wants clarification of audit restatements

Auditors must specify whether a company's financial restatement is due to error or change in accounting principles

US audit watchdog, The Public Company
Accounting Oversight Board (PCAOB)
has proposed that auditors specify
whether a company’s financial restatement is due to an error or a change in
accounting principles.

The PCAOB said the change would help investors clearly distinguish when a
company restated their results to comply with a different interpretation of
accounting rules, or made an actual mistake.

‘The proposal would specifically focus auditors on ensuring that disclosures
about those changes are accurate,’ board member
Charles
Niemeier
said in a statement.
The financial statement proposal and the “concept release” are available for
public comment up until 18 May.

Further reading:

SEC meeting to discuss Sarbanes-Oxley changes

Audit watchdog a step closer to global regulation

Audit oversight regulators meet in Tokyo

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