PCAOB Adopts Amendments to Auditing Standards Regarding Significant Unusual Transactions

The Public Company Accounting Oversight Board ("PCAOB") adopted amendments to auditing standards regarding significant unusual transactions.

Specifically, the amendments involve significant transactions that are outside the normal course of business for a company, or that otherwise appear to be unusual due to their timing, size or nature, and the company's financial relationship, as well as financial relationships and transactions with its executive officers.

The PCAOB stated that the amendments are designed to "heighten" an auditor's attention to areas that have been associated with risks of fraudulent financial reporting and that pose an increased risk of error.

Subject to SEC approval, the amendments will become effective for financial statements and audits beginning on or after December 15, 2014.

See: Fact Sheet.