Audit Regulator Gives Last-Minute Tips for Extended Audit Reports

As auditors finalize another batch of extended reports that will give investors more details about companies, the U.S. audit regulator has a few recommendations.

• The new public disclosures, known as critical audit matters, should reflect testing and other procedures auditors detail in their working papers, said George Botic, director of inspections for the Public Company Accounting Oversight Board. He spoke Dec. 11 at an American Institute of CPAs conference in Washington.
• Botic said it’s possible the wording of the disclosures will change as auditors review the critical audit matters, or CAMs, with audit committees and management. Auditors are required ...