PCAOB Proposes New Standard for the Auditor’s Use of Confirmation
The Public Company Accounting Oversight Board (PCAOB) recently issued for public comment a proposed new standard intended to strengthen and modernize the requirements for the auditor’s use of confirmation. Public comments on the proposal will be accepted through Feb. 20, 2023.
The proposed standard includes principles-based requirements that would apply to all methods of confirmation, including paper-based and electronic communications. The PCAOB said that the proposal would better integrate its confirmation standard with its risk assessment standards.
The standard would replace AS 2310, The Confirmation Process, and make conforming amendments to certain related PCAOB auditing standards. Originally developed by the AICPA in 1991, AS 2310 has not been changed substantially since the PCAOB adopted it as an interim standard in 2003.
For details on submitting comments on proposed PCAOB rules, visit its Rulemaking Docket page.