PwC supports transparency about the engagement partner and audit participants through means other than the audit report
PwC submitted a comment letter on the PCAOB’s reproposal of amendments to PCAOB auditing standards that are intended to improve the transparency of audits by requiring disclosure in the auditor’s report of the name of the engagement partner and information about other participants in the audit (Audit Participants).
Consistent with PwC’s previous response to the original proposal, PwC recognizes that many users ascribe value to such information. PwC continues to support transparency, through means other than identification in the audit report itself, of the name of the engagement partner, when coupled with the name of a member or members of firm leadership. PwC also supports providing the prescribed information about Audit Participants through means other than inclusion in the audit report.
PwC continues to believe that the perceived benefits of including information about the engagement partner and Audit Participants in the audit report itself are substantially outweighed by the significant potential litigation risks and costs that this creates and the practical difficulties created by the requirement to obtain consents. PwC suggests the following alternatives, but there may be other workable approaches: