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

Time to prepare for overtime changes

As an employer, trusted business adviser, or HR professional, you will need to be aware of exemption guidance, record requirements, advice for clients, and typical problems in applying overtime pay.

QUIZ

News quiz: Good news on pay and benefits for accountants

CPAs can find much to like in recent reports, including news that their expertise and skills are in such demand that pay is expected to rise and that their employers value professional certifications.

CHECKLIST

Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.