U.S. Audit Regulator Looking to Modernize Evidence Rules

The U.S. audit regulator said Tuesday that it would explore whether it should modernize its evidence standard to better reflect the types of information and technology that auditors increasingly use.

The Public Company Accounting Oversight Board said it is adding the audit evidence standard to its research agenda to consider whether additional guidance or a possible update to the rules is needed.

New techniques like automation and data analytics and the use of external data can affect both financial reporting and how audits are planned and conducted. The PCAOB is also interested in how auditors weigh the reliability and relevance ...