PCAOB to Discuss Auditor's Reporting Model

Washington, D.C., Mar. 8, 2011

The Public Company Accounting Oversight Board has scheduled an Open Meeting for Tuesday, March 22, at 9:30 a.m., for a presentation from the Office of the Chief Auditor on its outreach efforts to investors and others about potential changes to the auditor's reporting model.

The staff also will discuss with the Board how the input received may enhance the development and publication of a concept release, which would provide all members of the public an opportunity to comment on the issues.

The auditor's report is the primary means by which the auditor communicates to investors and other users of audited financial statements regarding its opinion on those statements. Several groups have recommended that the reporting model be re-examined and made more meaningful for investors.

For example, the PCAOB Standing Advisory Group and Investor Advisory Group have discussed areas for possible change in the auditor's report. Similarly, the U.S. Treasury's Advisory Committee on the Auditing Profession recommended in its report that the PCAOB should undertake a standard-setting initiative to consider improvements to the auditor's reporting model and, among other things, to clarify in the auditor's report the auditor's role in detecting fraud.

To further inform the Board about possible changes to the auditor's report, the staff reached out to investors, auditors, issuers, audit committee members, and other interested parties, to seek their views on potential changes on the auditor's report.

The meeting is open to the public and will take place in the PCAOB meeting room at 1666 K St. N.W., Washington, D.C. It will be Webcast via a link on the PCAOB Web site, and available via podcast later in the day.