PCAOB to Host Roundtable on Auditor’s Reporting Model
The Public Accounting Oversight Board will host a public roundtable Thursday, Sept. 15, to discuss its concept release on possible changes to the auditor’s reporting model.
Intended to gather insight from investors and other financial statement users, preparers of financial statements, audit committee members and auditors about presented changes to the auditor’s report, the roundtable will also allow participants to discuss alternatives not presented in the concept release.
“The board’s consideration of the audit reporting model is intended to identify meaningful opportunities to enhance the relevance of auditors’ communications with investors,” said James R. Doty, PCAOB chairman. “I look forward to a robust discussion at the roundtable meeting of various possibilities raised in the Board’s concept release or by commenters.”
Issued June 21, 2011, the concept release outlines several alternatives for changing the reporting model that would provide more transparency into the audit process and insight into the company’s financial statements or other information. The comment period closes Sept. 30.
The alternatives in the concept release include:
• An auditor's discussion and analysis;
• Required and expanded use of emphasis paragraphs;
• Auditor assurance on other information outside the financial statements; and,
• Clarification of language in the standard auditor's report.
"Any expansion of the auditor’s communication about the audit, the company’s financial statements, and information outside the financial statements would be intended to provide valuable information for decision making to investors and anyone else who uses those financial statements," said Martin F. Baumann, chief auditor and director of professional standards.