August 12, 2024
 

Comment Letter | PCAOB Substantive Analytical Procedures Proposal

PDF
In our letter we detail our views on the following:


    

  1. Support for modernizing AS 2305 with principles-based requirements.
    2. 

  2. Importance of risk assessment and professional judgment in designing and performing substantive analytical procedures.
    3. 

  3. Specific feedback, including:

      

    1. More clearly defining the term “company’s amount” within the Proposed Standard to better differentiate the term from other recorded balances and company-prepared information.
      2. 

    2. Removing the maximum threshold of tolerable misstatement for evaluating differences between the auditor’s expectation and the company’s amount.
      3. 

    3. Eliminating the requirement to examine relevant information from external sources when the company’s account or disclosure depends on information the company received from one or more external sources.
      4. 

    

    4. 



Read the full comment letter here.


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