PCAOB Releases Requirements Related to Metric Disclosures and Audit Firm Reporting

The PCAOB has released requirements under which registered public accounting firms that audit accelerated filers and large accelerated filers (as the SEC defines these terms) must report certain “firm- and engagement-level metrics.” The Board’s goal in issuing the new requirements is to gain insight into “how engagements are staffed, including the extent of involvement of senior personnel; auditors’ overall workload; retention of personnel across the firm; and levels of training, audit experience, and industry-specific expertise.” Firm-level metrics will be reported on a new Form FM, while engagement-level metrics will be reported on a revised Form AP.

In addition, the PCAOB has issued a set of amendments that require registered public accounting firms to disclose “more complete, standardized, and timely information.” Disclosure topics that the amendments address include financial and governance information, network arrangements, special reporting, cybersecurity, and quality-control policies and procedures.

Pending SEC approval, both sets of requirements will be phased in according to schedules outlined in their “Effective Date” sections.

For more information, see the press release on the PCAOB’s Web site.