Revised Proposal to Focus on Auditor Reporting Changes
The Public Company Accounting Oversight Board’s (“PCAOB”; “the Board”) staff is working on a revised proposal that reflects changes to the auditor’s reporting model. Based on Release No. 2013-005, Proposed Auditing Standards on the Auditor’s Report and The Auditor’s Responsibilities Regarding Other Information and Related Amendments, the updated proposal will make available additional information on audit reports for investors. Despite investors praising the change, public organizations and accounting firms believe the new disclosure requirement will expose private company matters that should be kept confidential. In their opinion, management should be accountable for divulging such information, not auditors.
Over the past few months, the PCAOB has been reviewing comments related to Release No. 2013-005, and feedback from a public discussion held in April. With the standard being in the works for the last three years, the Board may release the planned standard later this year.