• Research continues for planned going concern standard

    The PCAOB’s staff is continuing to research whether the board’s standard on going concern evaluations needs to be revised to accommodate the accounting changes from the FASB that now require company managements to assess their business’s financial viability. The audit regulator and the accounting board employ standards that use different thresholds that compel disclosure, and the PCAOB is not sure if it should try to align its guidance with the FASB’s.
  • Proposal addresses an auditor’s use of specialists

    The PCAOB proposed strengthening the requirements for auditors when they use the work of specialists in an audit. As the use of estimates has become more prevalent in financial reporting, the reliance upon valuation specialists has also grown, and PCAOB inspectors have uncovered an unevenness in the work auditors do when examining specialists’ work.