U.S. Audit Board Launches Review of Revamped Estimates Rules

Two years after U.S. auditors began applying new rules for how they evaluate complex accounting estimates, their regulator wants an update on how firms have changed their approach.

• The Public Company Accounting Oversight Board asked on Tuesday for feedback as part of an initial review of rules governing the auditing of estimates and the use of specialists, who often produce those numbers. Auditors began applying the rules for 2020 fiscal year financial statements.
• Complex and subjective estimates are among the most difficult areas to audit and are a common source of violations in PCAOB inspections. The ...