PCAOB Issues a Proposal to Replace Current Standard on Substantive Analytical Procedures

On June 12, 2024, the PCAOB issued for public comment a proposal to replace its existing auditing standard related to an auditor’s use of substantive analytical procedures with a new standard: AS 2305, Designing and Performing Substantive Analytical Procedures. According to the PCAOB, if adopted, the new standard would strengthen and clarify the auditor’s responsibilities when designing and performing substantive analytical procedures, increasing the likelihood that the auditor will obtain relevant and reliable audit evidence – ultimately improving overall audit quality and leaving investors better protected. The deadline for public comment on the proposal is August 12, 2024. A link to the PCAOB’s announcement and rule proposal can be found here.