• The US Public Company Accounting Oversight Board (PCAOB) issued an initial proposal to
enhance auditor reporting in 2013 and has indicated it intends to issue a re-proposal by
March 2015. The PCAOB had proposed that the auditor be required to report on “critical audit
matters,” which are similar but not identical to the IAASB’s “key audit matters.” “Critical audit
matters,” according to the PCAOB’s definition, would represent the areas in the audit of the
financial statements of most significant auditor difficulty.