How does an auditor figure out whether a matter involves especially "challenging, subjective, or complex judgment?"
The Public Company Accounting Oversight Board’s proposal would spawn confusion and liability, according to the U.S. Chamber of Commerce.
A PCAOB recommendation would require auditors to report on issues that kept them up at night.
Auditors will be required to file a new Form AP with the PCAOB, disclosing the name of the engagement partner.
The PCAOB will take a second crack at a proposal to require an auditor to reveal the thinking behind troublesome audit opinions.
The PCAOB appears to be backing away from requiring engagement partners be identified in an audit client's annual report.
A proposal to require auditors to disclose “critical audit matters” in their reports has generated apprehension among audit firms and pushback from CFOs.
Ninety-eight percent of “critical audit matters” identified during a field test involving 51 audits were previously communicated to the audit committee.
The PCAOB's plan to add color to the audit report draws fire from a corporate lawyer.
