Automation Driving Overhaul of Audit Evidence Rule

Auditors of privately-held companies should soon have clarity related to the use of emerging technology and automated tools.

The Audit Standards Board plans to finalize major changes to its evidence rule when it meets in Nashville, Tenn., beginning May 20. The board, part of the American Institute of CPAs, expects to vote May 23 whether to propose the rule change, which could be released mid-summer.

The project is several years in the works and is expected to lay a foundation for more updates to private company audit standards to address the rapid pace of audit innovations. The ASB’s modernization effort ...