PCAOB issues staff guidance for firms naming engagement partner

By Neil Amato

The PCAOB issued staff guidance Tuesday for firms filing a new form that requires disclosure of the names of engagement partners and other firms participating in public company audits.

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.

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.

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.

Neil Amato (namato@aicpa.org) is a JofA senior editor.

SPONSORED QUIZ

How well do you know small business?

There are over 30 million small businesses in the U.S., and many of them are optimistic in their outlook. Are you familiar with the obstacles and opportunities they are facing? Test your small business acumen with this quiz sponsored by Chase Ink®.

SPONSORED REPORT

In focus: Payroll

Providing payroll services that comply with ever-changing regulations and meet evolving employee and employer demands is no easy task. Paychex's Tom Hammond discusses common payroll considerations for CPA firms.