PCAOB Round Table to Address Auditor’s Reporting Model
The PCAOB said it will host a public round table on Thursday, Sept. 15, to discuss its concept release on possible changes to the auditor’s reporting model. The board issued a discussion paper for the meeting.
The board said in a press release that the purpose of the meeting is to obtain insight from investors and other financial statement users, preparers of financial statements, audit committee members and auditors on the alternatives presented in the concept release for changing the auditor’s report. Participants will also have an opportunity to present alternatives not discussed in the concept release.
For prior JofA coverage, see “PCAOB Considers Four Approaches to Changing Auditor’s Report.”
“The board’s consideration of the audit reporting model is intended to identify meaningful opportunities to enhance the relevance of auditors’ communications with investors,” PCAOB Chairman James R. Doty said in the press release. “I look forward to a robust discussion at the round-table meeting of various possibilities raised in the board’s concept release or by commenters.”
Comments on the concept release are due Sept. 30. To submit or view comments, click here.
The concept release, issued on June 21, presents several alternatives for changing the auditor’s reporting model and seeks comment on these or other alternatives that could provide investors with more transparency into the audit process and more insight into the company’s financial statements or information outside the financial statements. The alternatives described in the concept release for changing the auditor’s report include:
- An auditor’s discussion and analysis, which would be a supplemental narrative report to the auditor’s report and would allow the auditor to discuss his or her views regarding significant matters;
- Required and expanded use of emphasis paragraphs, which would highlight the most significant matters in the financial statements and identify where these matters are disclosed in the financial statements;
- Auditor assurance on other information outside the financial statements, which would require auditors to provide assurance on information outside the financial statements, such as management’s discussion and analysis (MD&A) or other information (for example, non-GAAP information or earnings releases); and,
- Clarification of language in the standard auditor’s report, which could involve clarifying what an audit represents and auditor responsibilities. Language and concepts that could be clarified include: reasonable assurance, auditor’s responsibility for fraud, auditor’s responsibility for financial statement disclosures, management’s responsibility for the preparation of the financial statements, auditor’s responsibility for information outside of the financial statements, and auditor independence.
More details about the event are available here. The list of attendees and other details will be available closer to the meeting date. Pre-registration is not required to observe the meeting.
Click here to read “PCAOB Set to Expand Under New Mandates: An Interview With PCAOB Chairman James R. Doty,” in the July 2011 issue of the JofA.
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