PCAOB Revises Form AP Staff Guidance
The Public Company Accounting Oversight Board (“PCAOB”) has provided staff guidance updates for Form AP, Auditor Reporting of Certain Audit Participants. Issued as Staff Guidance on Form AP, Auditor Reporting of Certain Audit Participants and Related Voluntary Audit Report Disclosure Under AS 3101, Reports on Audited Financial Statements , the update replaces the January edition and offers firms guidance on professional staff in secondment arrangements. Form AP requires the disclosure of participating firms and engagement partners in public company audits. Firms must file Form AP for public company audit reports released on or after January 31, 2017 (for engagement partners), and June 30, 2017 (for other participating audit firms).
PCAOB Amendments to Rule 4003 Receive SEC Approval
Amendments to Public Company Accounting Oversight Board (“PCAOB”) Rule 4003, Frequency of Inspections, have been approved by the Securities and Exchange Commission (“SEC”). Effective immediately, the amendments address how often the audit regulator performs inspections of various groups of registered public accounting firms. The amendments also: Remove the triennial inspection requirement for “substantial role only” firms, and replace it with a requirement to inspect at minimum five percent of such firms annually; Preserve the requirement to inspect firms that issue audit reports for an issuer but give the PCAOB permission to decline an inspection for any firm that does not. Read More.