PCAOB seeks feedback on auditors’ use of specialists

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PCAOB seeks feedback on auditors’ use of specialists

The PCAOB is seeking input on potential changes to standards for
auditors’ use of the work of specialists.

Use of specialists has become more common in recent years because of
the increasing complexity of business transactions reported in
financial statements, according to a PCAOB staff consultation paper
issued Thursday.

Valuation specialists, appraisers, engineers, and actuaries are
among the specialists whose expertise auditors of public companies
increasingly use.

Staff Consultation
Paper No. 2015-01
, The Auditor’s Use of the Work of
Specialists
, seeks public comment on possible changes,
specifically the objectivity and oversight of specialists and the use
of their work in audits.

The paper asks whether PCAOB standards adequately address auditors’
use of the work of specialists and whether more rigorous standards and
specific procedures are necessary to help auditors respond to risks of
material misstatement in the financial statements.

“The use of the work of specialists is important to investors
because it can help an auditor detect material misstatements in
complex areas of a company’s financial statements,” PCAOB Chairman
James Doty said in a news release. “We want our standards to keep pace
with realities in the marketplace.”

Comments can be submitted at the PCAOB’s website. The deadline is July 31.

Ken Tysiac (
ktysiac@aicpa.org
) is a JofA editorial director.

Research & References of PCAOB seeks feedback on auditors’ use of specialists|A&C Accounting And Tax Services
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