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PCAOB adopts new rules to require disclosure of engagement partner and other audit participants

  • PCAOB (US Public Company Accounting Oversight Board) Image

Dec 16, 2015

The PCAOB has issued a final rule, “Improving the Transparency of Audits: Rules to Require Disclosure of Certain Audit Participants on a New PCAOB Form and Related Amendments to Auditing Standards,” that would require auditors to file a new form, Form AP, in which they disclose (1) the name of the engagement partner, (2) “[t]he names, locations, and extent of participation of other accounting firms that took part in the audit, if their work constituted 5 percent or more of the total audit hours,” and (3) “[t]he number and aggregate extent of participation of all other accounting firms that took part in the audit whose individual participation was less than 5 percent of the total audit hours.”

The rule and amendments are subject to SEC approval. If they are approved by the SEC, the requirement to disclose the engagement partner “will be effective for auditor's reports issued on or after January 31, 2017, or three months after SEC approval of the final rules, whichever is later,” while the requirement to disclose other audit firms participating in the audit “will be effective for reports issued on or after June 30, 2017.”

For more information, see Deloitte's related journal entry as well as the press release and rule and related amendments on the PCAOB’s Web site.

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