SEC Approval of PCAOB Standard Sets Stage for Significant Changes in Audit Reports

On October 23, 2017, the Securities and Exchange Commission (SEC) approved the Public Company Accounting Oversight Board’s (PCAOB) new audit standard, representing the culmination of the PCAOB’s multi-year deliberative process of reconsidering the traditional approach to audit reports and resulting in significant changes to those reports.

The SEC approved the new standard, which was adopted by the PCAOB on June 1, 2017, without modification.