A n independent auditor’s report represents the culmination of the audit process and provides a written conclusion for use by third parties. The current auditor’s reporting model, first standardized in the 1940s, provides uniform language in order to make reports comparable; however, over the years, various groups (e.g., the Cohen, Metcalf, and Treadway Commissions) have asked for modifications to the report in order to enhance the communication between auditors and financial state- ment users. These requests have generally entailed additional infor- mation on the audit process, including a perspective on the poten- tial risks of material misstatement in the financial statements. Based on recent public comments, investors have suggested that audit reports contain the following information: ■ Areas of high risk in the audit or financial statements ■ Significant auditor judgments ■ Significant matters, such as management judgments, estimates, and uncertainties ■ Significant changes affecting the financial statements The PCAOB’s Proposed New Audit Report A C C O U N T I N G & A U D I T I N G auditing APRIL 2014 / THE CPA JOURNAL 24 By Thomas R. Weirich and Alan Reinstein Exploring the New Language and Elements