New PCAOB Audit Requirements Using the Work of a Company’s Specialists

Abstract

Securities and Exchange Commission Release NO. 34-86270; File NO. PCAOB-2019-03 on July 1, 2019 has the order granting approval of amendments to auditing standards for auditor’s use of the work of specialists. AS 1105 Appendix A includes the new requirements for using the work of a company’s specialist including understanding, assessing the knowledge, skill and ability, and evaluating the work. The new requirements amend AS 1201 and replace AS 1210 the new requirements are intertwined in all phases of the audit. This paper examines the changes and the potential implications for auditors using the work of a company’s specialist.