PCAOB considers new plan for naming engagement partner

The PCAOB voted unanimously to release for comment an alternative proposal for naming the engagement partner on audits. The board also approved issuing a concept release of a proposed set of 28 audit quality indicators.

The new idea for identifying the engagement partner calls for the creation of a new form, called Form AP, Auditor Reporting of Certain Audit Participants, on which the engagement partner would be named. The form also would provide the names, locations, and extent of participation of other accounting firms that contributed to the audit.

While proposing the new form as an option, the PCAOB also is still considering requiring engagement partner identification in the audit report. The comment period on the proposal ends Aug. 31.

The PCAOB also voted unanimously to issue a concept release regarding a proposed set of audit quality indicators. PCAOB Chairman James Doty said the long-term goal is to provide information allowing companies and audit committees to evaluate audit firms on factors other than price.

PCAOB staff proposed 28 audit quality indicators, divided into three groups: audit professionals, audit process, and audit results.

Comments on the concept release will be accepted until Sept. 28.