New Requirements for Public Company Auditor’s Reports

New Requirements for Public Company Auditor’s Reports

November 2, 2017, Covington Alert

On October 23, 2017, the Securities and Exchange Commission (the “SEC”) issued an order granting approval of a proposal by the Public Company Accounting Oversight Board (the “PCAOB”) to adopt Auditing Standard (“AS”) 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, and related amendments to other auditing standards (collectively, the “Updated Standards”). The Updated Standards aim to make auditor’s reports more informative and relevant to shareholders and investors and will result in significant changes to auditors’ reports beginning with audits of fiscal years ending on or after December 15, 2017.