A new PCAOB standard aims to modernize the process that auditors use to verify information via a third party about one or more financial statement assertions.
Effective for financial statement audits for fiscal years ending on or after June 15, 2025, the standard will replace a 1991 AICPA standard adopted by the PCAOB on an interim basis shortly after the board’s formation in 2003.
The PCAOB said the new confirmation standard “establishes principles-based requirements designed to stay relevant as technology evolves by applying to all methods of confirmation, including electronic and paper-based communications.” See the key provisions.