Point of view: PCAOB Proposed Auditor Reporting Model Changes: Evaluating auditor's discussion and analysis

Point of view 05/08/2012 by Assurance services

Highlights

  • Investors value the current auditor's report but want more insight from auditors.
  • The time is right to consider changes that will enhance the relevancy and transparency of audits to investors.
  • Some investors want auditors to discuss their views on management's judgments and estimates, accounting policies and practices, and difficult or contentious issues - essentially to prepare an auditor's discussion and analysis.
  • We do not support an auditor's discussion and analysis. We believe that instituting it would lead to unintended consequences that would be detrimental to audit and financial reporting quality.