PCAOB Proposes Amendments and New Standard on Firms’ Use of Other Auditors

April 28, 2016 RECENT DEVELOPMENTS

On April 12, 2016, the PCAOB released proposed amendments to the auditing standards on an audit firm’s use of other audit firms and proposed a new standard, Dividing Responsibility for the Audit with Another Accounting Firm.  The proposals seekto enhance the transparency of firms’ use of other audit firms, especially by firms domiciled outside the US (e.g. extent to which the other firm contributed to the audit), and also prescribes responsibilities to the lead auditor regarding, for example, planning, supervision, evaluation, communication and workpaper access.  Comments on the proposals are due July 29, 2016.