PCAOB on Evaluating Consistency of Financial Statements

Last week, the PCAOB adopted new Auditing Standard No. 6 on Evaluating the Consistency of Financial Statements. The press release states that it is intended to align auditors' responsibilities with SFAS No. 154 and to update auditors' responsibilities to evaluate and report on consistency of financial statements. In particular, this should clarify auditors' responsibilities in reporting on adoption of new accounting principles or corrections of material misstatements.