Statement on PCAOB’s New Auditor’s Reporting Standard
Commissioner Kara M. Stein
Oct. 23, 2017
Today, the Commission unanimously approved an auditing standard issued by the Public Company Accounting Oversight Board (PCAOB). This standard marks the first significant change to the auditor’s report in more than 70 years.
The new auditor’s report should provide investors with more meaningful information about the audit, including significant estimates and judgments, significant unusual transactions, and other areas of risk at a company. This new information from the auditor will add to the total mix of information available to investors when making voting and capital allocation decisions.
Hearing directly from the auditor on these topics should improve an investor’s experience, and I look forward to both seeing the new reports and hearing from investors about the changes.