On May 13, 2024, the Public Company Accounting Oversight Board (PCAOB) adopted a new auditing standard, AS 1000, General Responsibilities of the Auditor in Conducting an Audit and Amendments to PCAOB Standards (PCAOB Release no. 2024-004). AS 1000 enhances and consolidates a group of standards that were originally developed by the AICPA and adopted on an interim basis by the PCAOB in April 2003. The new auditing standard addresses the general principles and responsibilities of the auditor, such as due professional care, professional skepticism, competence, and professional judgment and will apply to all audits under PCAOB standards.

AS 1000 will replace four standards that set forth the general principles and responsibilities of the auditor: AS 1001, Responsibilities and Functions of the Independent Auditor; AS 1005, Independence; AS 1010, Training and Proficiency of the Independent Auditor; and AS 1015, Due Professional Care in the Performance of Work. AS 1000 combines and updates the general principles and responsibilities of those standards to reflect developments in the auditing environment.

The amendments clarify the engagement partner’s responsibility to exercise due professional care related to supervision and review of the audit, accelerate the documentation completion date by reducing the maximum period for the auditor to assemble a complete and final set of audit documentation from 45 days to 14 days, and clarify the auditor’s responsibility to evaluate whether the financial statements are “presented fairly.”

AS 1000 and the related amendments modernize, clarify, and streamline the general principles and responsibilities of the auditor and the PCAOB believes the new auditing standard provides a more logical presentation. Additionally, the PCAOB believes AS 1000 and related amendments will enhance the usability of the standards by making them easier to read, understand, and apply.

EFFECTIVE DATES: Subject to approval by the Securities and Exchange Commission, the new standard and related amendments will take effect for audits of financial statements for fiscal years beginning on or after December 15, 2024, except that, for registered public accounting firms that provide audit opinions for 100 or fewer issuers, the amendment relating to the documentation completion date will take effect for audits of financial statements for fiscal years beginning on or after December 15, 2025.

The full text of PCAOB Release No. 2024-004 is available at:
https://assets.pcaobus.org/pcaob-dev/docs/default-source/rulemaking/docket-049/2024-004-as1000.pdf?sfvrsn=3ba6358a_2