Consider changes to auditing standards in the AS 1000 series and in AS 2815, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles."
The auditing standards included in this group of standards are:
- AS 1001, Responsibilities and Functions of the Independent Auditor;
- AS 1005, Independence;
- AS 1010, Training and Proficiency of the Independent Auditor;
- AS 1015, Due Professional Care in the Performance of Work; and
- AS 2815, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles"
These standards continue to be in effect substantially in the form adopted by the Board on an interim basis from the American Institute of Certified Public Accountants in April 2003. In the staff’s view, the concepts in these standards (e.g., due professional care and professional skepticism) remain sound, but the standards could be modernized and streamlined through updates that would clarify auditor responsibilities and enhance the usability of the standards by making them easier to read, understand, and apply. In addition, the requirements in the standards could be aligned, where necessary, with other PCAOB standards and PCAOB rules.
Staff analysis for each standard will take into account the requirements in other PCAOB standards, observations from the Board’s oversight activities, changes to audit firms’ methodologies, the activities of other standard setters and regulators, and information from investors and other stakeholders.
The staff is developing a proposed standard for the Board’s consideration.