The US Public Company Accounting Oversight
Board (PCAOB) will make changes to the auditor’s reporting model
following its research which found that investors want more risk
disclosure and greater transparency.
PCAOB chairman James Doty said investors have
shown dissatisfaction with the current auditor’s report model,
which will now be reviewed by the regulator and re-published in the
next few months.
“This report from our own staff, based on
their discussions with a broad audience, will be vital to the
board’s effort to develop a meaningful proposal for change in a
concept release. Our intention is to expose such a release as early
as this summer,” Doty said.
PCAOB chief auditor Martin Baumann said the
research found investors need to hear more from the auditor about
the risks the auditors faced in the audit and about the judgments
and estimates management has made in the financial statements.
The PCAOB research was carried out by the
office of the chief auditor (OCA) based on work with investors,
auditors, preparers of financial statements, audit committee
members.
