PCAOB Proposed Auditor Reporting Model Changes: 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.