PCAOB considers new plan for naming engagement partner

The board also is seeking input on potential indicators of audit quality.

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.

RESOURCES

Keeping you informed and prepared amid the coronavirus outbreak

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.

VIDEO

Excel walk-through: Sparklines

Want to liven up your spreadsheets with some color and graphical elements? Kelly L. Williams, CPA, Ph.D., shows how to use Excel sparklines, which illustrate data trends and patterns via small charts that fit in a single Excel cell.