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

May 2012
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Point of view: PCAOB Proposed Auditor Reporting Model Changes: Evaluating auditor's discussion and analysis

At a glance

PwC examines, and shares our views on, the PCAOB's concept release on the auditor's reporting model including evaluating auditor's discussion and analysis

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.