The Public Company Accounting Oversight Board has reproposed for public comment amendments to PCAOB auditing standards that would improve the transparency of audits through the disclosure in the auditor's report of the engagement partner and certain other participants in the audit.
The auditor's report presently does not contain information about who served in the role of engagement partner, or whether the firm issuing the report performed all of the audit work. Generally, audit reports today only disclose the name of the firm that issued the opinion.
Other than the disclosure obligations, the reproposed amendments would not change the performance obligations of the auditor in conducting the audit.
The reproposed amendments would require the disclosure in the auditor's report of the name of the engagement partner for the most recent period.
The reproposed amendments no longer include a requirement for audit firms to disclose the name of the engagement partner in the Form 2 annual report they are required to file with the PCAOB.
If adopted, the reproposal would amend: (1) AU sec. 508, Reports on Audited Financial Statements, (2) AU sec. 9508, Reports on Audited Financial Statements: Auditing Interpretations of Section 508, (3) AU sec. 543, Part of Audit Performed by Other Independent Auditors, (4) Auditing Standard No. 1, References in Auditors' Reports to the Standards of the Public Company Accounting Oversight Board, and (5) Auditing Standard No. 5, An Audit of Internal Control Over Financial Reporting That Is Integrated with An Audit of Financial Statements.
The second part of the Board's reproposal would require the inclusion of information about certain other participants in the audit. In many audit engagements, especially audits of companies with multiple locations and international operations, the audit firm issuing the opinion may perform only a portion of the audit.
The information to be disclosed would be:
Revisions to the reproposed amendments include: