Governance |
PCAOB Considers Naming Clients in Audit Inspection Reports
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The Public Company Accounting Oversight Board (PCAOB) may disclose the names of companies that were the subject of audits when the board makes additional changes to its public accounting company investigation reports.
Client names aren’t disclosed currently. The PCAOB made changes in those reports in June 2020.
Robert Brown Jr., a PCAOB board member, told members of the CFA Institute in July 2020 that additional, upcoming changes could include listing failures to make required inquiries of and communications to the company’s audit committee. Brown defended the possibility of naming companies, saying, “Disclosure that a firm had deficiencies in an audit of a specific company…does not automatically raise issues with the financial statements of the company.”
