Wanted: Detailed Audit Reports Tailored to Each Company (1)

U.S. auditors are perhaps being a bit too cautious in their approach to a new extended auditor’s report set to debut later this year.

But the Public Company Accounting Oversight Board has some advice: Be direct, be specific, and please don’t merely parrot the new PCAOB rules when describing to investors critical audit matters (CAMs)—accounting issues that that firms may find to be especially challenging or complex.

The U.S. audit regulator released guidance March 18 that offered feedback to auditors based on a pre-implementation review of 10 major firms’ methods, training, and written drafts of CAMs. The documents also include ...