Aug 24, 2016
From the Financial Reporting Network
KPMG LLP recently commented on PCAOB Release No. 2016-003, Proposed Auditing Standard – The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion and Related Amendments to PCAOB Standards. The Release is a reproposal by the Board that would require communication of critical audit matters (CAMs) in the auditors’ report. CAMs are matters that have been communicated to the audit committee and involve especially challenging, subjective, or complex auditor judgment.
KPMG believes that the proposed standard and related amendments would enhance the form and content of the auditors’ report to make it more relevant and informative to investors and other financial statement users. The firm commented on certain areas of the Release that it believes should be modified to improve the final standard.