backOn September 18, 2025, the PCAOB released a Board policy statement to assist auditors in implementing recent amendments to AS 1105, Audit Evidence. Among other updates to the auditing standard, the amendments added new paragraph .10A, under the heading, “Evaluating the Reliability of External Information Provided by the Company in Electronic Form.” The new paragraph requires auditors to evaluate the reliability of external electronic information provided by the company by: (a) obtaining an understanding of the source and of the company’s process for receiving, maintaining, and processing the information; and (b) testing the information or the relevant controls. As noted in the policy statement, paragraph .10A does not prescribe the nature, timing, or extent of the procedures, as the requirements are “principles-based and scalable based on risk.” The Board issued the policy statement to provide relevant information concerning when separate testing under paragraph .10A(b) may not be necessary, based upon an auditor’s risk assessment, importance of the information used, and the results of certain audit procedures.
Additional guidance will be issued by the Office of the Chief Auditor illustrating the scope and application of the Board’s policy statement and providing additional examples of the application of paragraph .10A(b).
The PCAOB’s announcement and a link to the Board policy statement are available here.