In order to increase transparency into audits the US Public Company Accounting Oversight Board (PCAOB) has re-proposed changes that would require the disclosure of the audit engagement partner in the auditor’s report.
Currently audits only disclose the name of the firm that issue the auditor’s report so that information about other firms and persons participating in the audit is unknown to investors and other users of the report.
The proposal by the PCAOB also asks for the names, locations and extent of the participation of other persons not employed by the auditor who performed procedures on the audit.
The PCAOB is re-proposing the amendments to seek additional comment on; the usefulness of the information that would be required to be disclosed, the potential costs the reproposed amendments might impose and whether the reproposed amendments would have any effect on competition.
PCAOB chairman James Doty said: "Knowing the name of the engagement partner on an audit, and the various other firms that participate in a global audit may help the investing public identify and judge quality, leading to better auditing."
The PCAOB initial proposal regarding the disclosure of the engagement partner was issued in October 2011 and followed the Concept Release issued by the PCAOB in July 2009 on requiring the engagement partner to sign the audit report.
Comments on the re-proposed amendments are due by 3 February 2014.
Writen by: James Callery