The Public Company Accounting Oversight Board (the PCAOB) is hosting a public roundtable on September 15, 2011, to discuss its concept release on possible changes to the auditor’s reporting model.
The PCAOB issued the concept release to seek public comment on potential changes to the auditor’s reporting model based on concerns of investors and other financial statement users. The objective of the concept release is to discuss several alternatives for changing the auditor’s reporting model that could increase its transparency and relevance to financial statement users, while not compromising audit quality. The alternatives described in the concept release for changing the auditor’s report include:
- a supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the company’s financial statements (an “Auditor’s Discussion and Analysis”)
- required and expanded use of emphasis paragraphs in the auditor’s report
- auditor reporting on information outside the financial statements
- clarification of language in the auditor’s report
The PCAOB noted in the release that auditors, as a result of the performance of required audit procedures, often have significant information regarding a company’s financial statements and the audit of these financial statements that is not currently reported in the auditor’s report to the financial statement users. Such information could be useful to investors and other financial statement users.
Comments on the concept release are due by September 30, 2011. The public meeting will be held in Washington, D.C. and is open to the public; it will also be available via Webcast on the PCAOB website. Additional information is available on the PCAOB website.