CAQ Alert #2017-06, The Auditor’s Report – New Requirements for 2017, outlines the requirements of the new auditing standard, AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, which are to be implemented in two phases.
In the first phase, changes provide information about auditor tenure and clarify the auditor’s responsibilities. The first phase of implementation affects audit reports issued on financial statements of public companies for fiscal years ending on or after December 15, 2017.
In the second phase, the auditor is required to provide new information about the audit, including critical audit matters. The second phase is effective for fiscal years ending on or after June 30, 2019 for large-accelerated filers, and for fiscal years ending on or after December 15, 2020 for audits of all other companies to which the requirements apply.