WilmerHale
MONTH-IN-BRIEF (Apr 2024)
PCAOB Proposes New Audit Firm Disclosures
By Thomas W. White, Retired Partner, WilmerHale
The Public Company Accounting Oversight Board (“PCAOB”) has issued two proposals that, if adopted, would substantially expand public disclosures and confidential reporting by registered public accounting firms. According to PCAOB Chair Erica Y. Williams, the proposals, which were issued on April 9, “would strengthen PCAOB oversight and equip investors, audit committees, and others with clear, consistent, and actionable data related to the audit.”
Standardized Firm and Engagement Metrics. The first proposal would require certain registered firms to disclose a standardized set of information about the firms’ audits and audit practices. According to the PCAOB, while some firms voluntarily provide certain firm-level metrics today, the number of firms doing so is small, the substance of the disclosures is inconsistent across firms, and, because the disclosures are voluntary, they are subject to revision or discontinuance.