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PCAOB issues guidance for Form AP
A new rule requires firms to name engagement partners and other firms that worked on the audit.
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The PCAOB issued staff guidance to help firms comply with a new rule that requires disclosure of the names of engagement partners and other firms that worked on the audit.
The name of the engagement partner will be required on Form AP for all public company audits issued on or after Jan. 31, 2017.
Under the rules, firms also will be required on Form AP to include information about other firms taking part in the audit for all public company audits issued on or after June 30, 2017. This includes the names, locations, and extent of participation of other accounting firms that took part in the audit, if their work constituted 5% or more of total audit hours. It will also include the number and aggregate extent of participation of all other accounting firms that took part in the audit whose individual participation was less than 5% of the total audit hours.
The PCAOB voted Dec. 15 to require firms to name the engagement partner in an audit of a public company. The SEC approved the rules May 10.
Form AP, Auditor Reporting of Certain Audit Participants, is available on the PCAOB website. The board also launched a webpage about the form for investors, auditors, and others interested in the information.
