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The Public Company Accounting Oversight Board (PCAOB) is seeking clarification over companies auditing restatements.
The US audit watchdog is proposing that a company formation and auditors state whether financial restatements they submit are due to error or to changed accounting principles.
The aim is to help investors more easily distinguish when a company has made a mistake, and when it restated its results to comply with a different interpretation of accounting rules.
The changes will not require companies to define different types of mistake, however, such as the misapplication of accounting rules, mathematical errors or fraud.
PCAOB board member Charles Niemeier said in a statement: "The proposal would specifically focus auditors on ensuring that disclosures about those changes are accurate."
Before the proposal becomes a rule, it must be approved by the PCAOB and the Securities and Exchange Commission.
The board voted unanimously for the proposals, and it will be available for public comment until May.
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