U.S. Watchdog Proposes Greater Disclosure from Auditors

The PCAOB's plan would mark the first significant change in audit reports in 70 years.

Auditors would be required to disclose the most difficult parts of their opinion of a public company’s books under a proposal that would trigger the first change in 70 years to the reports.

The Public Company Accounting Oversight Board voted unanimously today to issue a plan meant to amplify the information investors receive from the auditor’s report. The PCAOB has studied ways to overhaul such reports since the 2008 credit crisis.

‘Emphasis Paragraphs’

Instead of a separate report, the PCAOB’s proposal calls for auditors to disclose “critical audit matters,” which are typically communicated to the public company’s audit committee.

Page 1 of 2

Copyright 2016 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Comments

Advertisement. Closing in 15 seconds.