Tag: audit report

The CAMs are coming: PCAOB adopts new standard to enhance audit reports

by Cydney Posner Yesterday, as anticipated, the PCAOB adopted, subject to SEC approval, a new auditing standard for the auditor’s report that, while retaining the usual pass/fail opinion, will require auditors to include a discussion of “critical audit matters,” that is, “matters communicated or required to be communicated to the […]

Study finds disclosure of “critical audit matters” may reduce legal exposure for auditors

by Cydney Posner When the PCAOB originally floated the idea of an expanded audit report in 2011, the proposal fueled quite a controversy.  Supporters of the concept contended that the current form of the auditor’s report was just boilerplate that “tells investors little of substance about a company’s true condition,” while […]

Comments on PCAOB reproposal of expanded auditor’s report reflect predictable split

by Cydney Posner As discussed in this PubCo post, in May of this year, after five years of outreach, the PCAOB once again attempted to make the auditor’s report more relevant and informative to investors by reproposing the auditor reporting standard, The Auditor’s Report on an Audit of Financial Statements When […]

PCAOB adopts rule requiring audit engagement partners to be named on new Form AP

by Cydney Posner At an open meeting this morning, the PCAOB voted to adopt new rules requiring audit firms to disclose, on new PCAOB Form AP —  Auditor Reporting of Certain Audit Participants, the name of the audit engagement partner.  The form will also disclose the names, locations and extent […]

Study of enhanced audit and audit committee reports in UK shows positive audit impact

by Cydney Posner This study reported in Compliance Week may put some wind in the sails of those seeking to enhance the nature of the disclosures in standard audit reports and audit committee reports in the US.  The study showed that, in the UK, which has already mandated expanded audit reports […]

SEC to consider requiring disclosure of audit firm tenure and name of engagement partner

by Cydney Posner The SEC is expected to issue its concept release on improving audit committee reports “soon” (whatever that means) according to Compliance Week, and among the topics the SEC will examine is whether those “reports should include the audit firm’s tenure and the name of engagement partners.”  If this […]

Has the PCAOB finally reached a compromise on naming audit engagement partners?

by Cydney Posner The saga of the PCAOB and its proposals to require identification of the audit engagement partner continues.   Compliance Week reports, based on a newly published PCAOB standard-setting agenda, that the PCAOB is now considering issuance of a supplemental request for comment in connection with yet another proposed compromise […]