New PCAOB reporting framework for audit firms in the USA

  • PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

11 Jun 2008

The US Public Company Accounting Oversight Board (PCAOB) has adopted rules to establish a reporting framework for registered public accounting firms.

The rules require that each firm report certain information annually. The rules also require special reporting regarding certain specified events within 30 days of the event.
  • Annual reporting on Form 2. Beyond basic threshold information about the identity of the firm and the location of its offices, Form 2 requires information in three categories: the firm's issuer-related practice, internal and external resources on which the firm draws in performing audits, and certain new relationships and acquisitions. Form 2 also requires an affirmation related to the firm's statutory obligations to cooperate with the Board.
  • Special Reporting on Form 3. The occurrence of specified non-routine events triggers an obligation to file a special report on Form 3. Examples of the kinds of events that may trigger this reporting are:
    • Withdrawal of an audit report
    • Audit firm moving above or below the 100-public-client threshold, which affects the frequency of PCAOB inspections
    • Involvement in certain lawsuits or bankruptcy proceedings
    • Disciplinary actions
    • Change of name or contact details
Click for PCAOB Rules (PDF 289k).


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