Until now, a typical audit report included a couple of paragraphs or boilerplate rundown of whether a firm received a passing or failing grade; in other words, if the company could continue as a going concern. But the PCAOB is looking to change that.
Though it will still keep the pass/fail audit test, the PCAOB is looking for a longer report that will also require auditors to communicate critical matters as determined by the auditor. This includes explaining the quantitative significance, if any, of corrected misstatements that may have to be made as well as referring to the specific financial statements and disclosures that relate to a critical audit matter.
via Audit Reports Could Face Biggest Shake-Up Yet — CFO.com