PCAOB wants clarification of audit restatements

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
said in a statement.
The financial statement proposal and the “concept release” are available for
public comment up until 18 May.

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