• Register
Return to: Home > News > Standards > US regulator endorses plans for audit firm annual reports

US regulator endorses plans for audit firm annual reports

Registered US audit firms will be required to produce publicly available annual reports and routinely reveal details on legal proceedings, administration changes and other important events, according to new Public Company Accounting Oversight Board (PCAOB) rules.

The reporting requirements were passed by national regulator Securities Exchange Commission (SEC) in an attempt to improve the transparency of firms.

In the EU, firms are required to produce transparency reports, which provide details about how much a firm earns each year, its clients and personnel details.

The first set of US rules will come into effect on 12 October 2009. These relate to PCAOB Form 3 reports, which cover issues from administrative matters, such as changes in a firm's contact information to more substantive matters, including certain types of legal proceedings against a firm or its personnel. Form 3 reports must be produced within 30 days of an event occurring.

Firms will also have to produce annual reports, with the first of these due 30 June 2010.

All firms that are registered with the PCAOB as of 31 March of a particular year must, by 30 June of that year, file an annual report covering the 12-month period ending 31 March.

Annual reports will contain information on audit reports issued, disciplinary histories of new personnel, and information on fees billed to issuer audit clients for various categories of services.

“Adoption of these rules will put into effect an important provision of the Sarbanes-Oxley Act and increase transparency regarding firms registered with the PCAOB, including auditors of public companies and broker-dealers,” said PCAOB acting chairman Daniel Goelzer.

Another new rule allows for a firm to succeed to the registration status of a predecessor firm without a break in that registration status and without the need to file a new registration application.

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more


    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.