News & Insights

Auditor Liability Bulletin

April 26, 2024

PCAOB Announces Opportunity to Comment on Proposals Regarding Increased Transparency Into Audits and Audit Firms

On April 26, 2024, the PCAOB alerted investors to the opportunity to comment on proposals regarding firm and engagement metrics and firm reporting.  The Firm Reporting Proposal would require audit firms to uniformly and publicly disclose certain information about their organization and operations, which the PCAOB asserts would “provide investors and audit committees with 11 decision-useful metric areas about audit firms and individual audits that comprise the overwhelming majority of the U.S. public company market capitalization.”  The Firm Reporting Proposal would also update the confidential reporting by audit firms to the PCAOB to require, among other things, the largest audit firms to provide the PCAOB with their financial statements, and to require more timely “special” reporting, including special reporting for events material to an audit firm’s organization, operations, liquidity or financial resources, or provision of audit services.  Comments on the proposals are due by June 7, 2024.

The PCAOB’s alert is available here.

Comments on the Firm and Engagement Performance Metrics Proposal can be submitted here.

Comment on the Firm Reporting Proposal can be submitted here.