PCAOB Proposes Greater Transparency for Audit Firms
On 9 April the US Public Company Accounting Oversight Board (PCAOB) released a proposal to significantly enhance a range of metrics that audit firms will need to publicly disclose on an annual basis.
Proposed metrics include measures about the number of audit professionals that worked within engagements teams, the hours worked across different labour categories, (including the number of Partner hours expended on audits), the overall workload (hours worked each quarter, for example), breakdowns on the use of specialist and shared services centres, as well as years of experience and years of industry experience provided by the audit firm on regulated audits.
The disclosures will also seek a host of information on other relevant topics including retention levels, training levels and metrics about risk management and internal review work undertaken. It’s an expanding list. {Ed — we know investors that want a lot more, but this represents a significant expansion}
The most interesting part from our perspective? Yes. The regulator is asking whether this information should be tagged in Inline XBRL.
Comments due by 7 June 2024. Find the details here.
