PCAOB to consider requiring name of engagement partner in auditor’s report

BY KEN TYSIAC

The PCAOB will consider reproposing amendments to auditing standards that would require disclosure in the auditor’s report of the name of the engagement partner and certain other participants in the audit.

This topic will be considered during a meeting at 9:30 a.m. EST on Dec. 4, and has been a source of formal interest for the PCAOB for more than four years. A concept release in July 2009 sought comment on whether the engagement partner should be required to sign the auditor’s report.

An earlier proposal issued in October 2011 would have required disclosure of the engagement partner and certain other firms, but it did not result in a standard. However, PCAOB Chairman James Doty said recently that the board’s understanding of the issue has improved through discussions with SEC staff members and reviews of academic research.

The board also will consider adopting proposed amendments that would conform PCAOB rules and forms to requirements contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111-203. These amendments, proposed in February 2012, include:

  • Amendments that would establish PCAOB oversight over audits of brokers and dealers.
  • Amendments to certain rules based on the PCAOB’s administrative experience.


The Dec. 4 meeting will be available by webcast on the PCAOB site.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

SPONSORED REPORT

Click-through nexus: Pushing the boundaries of sales tax compliance

Sales and use tax compliance has been complicated by nexus expansion. In this report, we provide an overview of this issue and include a handy state-by-state summary of click-through nexus or notification requirements.

QUIZ

News quiz: Making allowances for the kids and the economy

Recent news gives CPAs insight into Americans’ attitudes about children and money and gauges outlook on the economy. See how much you know about recent news and reports with this quiz.

CHECKLIST

Auditing risks in culture

Cultural flaws can seriously damage an organization. Here’s how internal auditors can reduce risks by embedding culture audits into existing audit programs.