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SEC approves PCAOB rules requiring disclosure of engagement partner and other audit participants

  • SEC (US Securities and Exchange Commission) Image

May 10, 2016

The SEC has approved the PCAOB’s final rules "Improving the Transparency of Audits: Rules to Require Disclosure of Certain Audit Participants on a New PCAOB Form and Related Amendments to Auditing Standards," which were issued on December 15, 2015.

The final rules require au­di­t firms to file a new form, Form AP, that dis­closes (1) the “name of the en­gage­ment partner”; (2) the “name, location, and extent of participation [as a number or within a range] of each other accounting firm participating in the audit whose work constituted at least 5% of total audit hours”; and (3) the “number and aggregate extent of participation of all other accounting firms participating in the audit whose individual participation was less than 5% of total audit hours.” The form must be filed with the PCAOB within 35 days (10 days for initial public offerings) after the date the audit report is first included in the SEC filing.

The requirement to disclose the engagement partner is effective for audit reports issued on or after January 31, 2017. The disclosure requirements related to other accounting firms are effective for auditors’ reports issued on or after June 30, 2017.

For more in­for­ma­tion, see Release No. 34-77787 on the SEC’s Web site and the final rules on the PCAOB’s Web site.

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