The Public Company Accounting Oversight Board is seeking commenton proposed changes that may require auditors of U.S.-registeredfirms to explain their findings rather than simply saying whetherrules were followed.

The PCAOB, the Washington-based watchdog for firms that reviewcompanies' books, issued a statement today on “possibleenhancements” of the model for the auditor's report, which itcalled a primary means for communicating with investors.

“The auditor is in a unique position to provide relevant anduseful information,” Martin F. Baumann, the PCAOB's chief auditorand director of professional standards, said in the statement. “Theconcept release explores ways to expand the auditor'scommunication” about a report and a company's financialstatements.

PCAOB Chairman James Doty said the release is a significant movefor investor protection in response to the 2008 financial crisisand the first step toward reforms designed to improve therelevance, transparency and reliability of the audit process.

The regulator, created by the Sarbanes-Oxley Act of 2002 andoverseen by the Securities and Exchange Commission, will acceptcomment on the concept release through Sept. 30 and plans to hold apublic meeting on the proposal later this year.

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