PCAOB Form AP staff guidance updated for secondments

The PCAOB issued updated staff guidance Thursday providing new information to firms on applying the new requirements of Form AP to professional staff in secondment arrangements.

Under new rules, PCAOB-registered public accounting firms will be required to disclose on a new Form AP the name of the engagement partner on a public company audit and provide information about other accounting firms that participate in the audit of a public company.

The guidance issued Wednesday updates a document the PCAOB issued on Jan. 26. The update explains that for purposes of determining firm participation in the audit and calculating audit hours, professional employees in a secondment arrangement should be treated as if they were employed by the accounting firm to which they are seconded.

In an example provided in the update, Ms. Smith is an employee of ABC Audit Firm Australia on a two-year secondment to ABC Audit Firm US, working in the U.S. firm’s New York City office. She serves as a member of the engagement team on ABC Audit Firm US’s audit of Company G under the supervision of Audit Firm US and does not perform audit procedures in relation to Australian entities. For the purposes of reporting on Form AP, Ms. Smith’s participation in the audit does not indicate that ABC Audit Firm Australia participated in the audit of Company G.

—Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is a JofA editorial director.