A new group of audit reporting standards proposed in November by the AICPA Accounting Standards Board aims to increase the transparency of the auditor’s considerations in issuing an opinion. Proposed changes to the report include:
These changes take into consideration reporting projects of the IAASB and PCAOB. In addition to an expanded opinion, the proposed standards would provide the option of communicating key audit matters (KAMs) in the report.
In a review of the proposed standards, the OSCPA Accounting and Auditing Committee had significant concerns about the trickle-down impact of providing the option for SEC-like disclosures of KAMs in audit reports for non-issuers. Concerns included:
What do you think? Should non-issuers be provided the option of including KAMs in the audit report, or do the risks outweigh the value? Share your comments below.