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PCAOB Audit Engagement Partner Disclosure Rule Approved

The Securities and Exchange Commission has approved the Public Company Accounting Oversight Board’s (“PCAOB”) rule requiring the disclosure of the engagement partner and other participating accounting firms in an audit in Release No. 34-77787, Public Company Accounting Oversight Board; Order Granting Approval of Proposed Rules to Require Disclosure of Certain Audit Participants on a New PCAOB Form and Related Amendments to Auditing Standards.

Per the release, audit firms will have to disclose such information when filing the new PCAOB Form AP, “Auditor Reporting of Certain Audit Participants.” The lead audit firm must also make known the extent of other auditors who participated in the audit.

In regard to the disclosure of the engagement partner, the annual reporting requirement is effective for auditor reports released on or after January 31, 2017. The disclosure of other participating audit firms is effective after June 30, 2017. Form AP must be filed no more than 35 days after the auditor report in a client’s 10-K filing is submitted.

The disclosure rules impact audits of public companies, including emerging growth companies as described by the JOBS Act. Audits of broker-dealers, however, are not covered by the rules.

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