Opportunities and Pitfalls of the Proposed New PCAOB Audit Report

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  In Dialogue Session: Table 7

Abstract

The PCAOB has recently proposed that auditors add additional information in their reports for publicly traded entities, which will provide both quantitative and qualitative information beyond the auditor’s current pass/fail report. With a slated 2015 implementation date subject to further PCAOB and SEC reviews, CPA practitioners, creditors, investors and other third party users should follow the PCAOB consideration of this project in order to comment to the PCAOB if it requests further input into this matter and to the SEC if the proposal takes an inappropriate turn. This study summarizes this proposal and discusses some potential pitfalls.

Authors

• Thomas R Weirich, Central Michigan University

• Alan Reinstein, Wayne State University

• Gerald H. Lander, University of South Florida-St. Petersburg