United States

Form AP tool for audit committees

FINANCIAL REPORTING INSIGHTS  | 

As previously communicated, the Public Company Accounting Oversight Board (PCAOB) has issued new rules requiring the disclosure of the engagement partner's name and information about audit participants on PCAOB Form AP, Auditor Reporting of Certain Audit Participants. The Form AP disclosure requirement for the engagement partner's name was effective for auditors' reports issued on or after January 31, 2017, and the requirement to disclose other accounting firms participating in the audit is effective for auditors' reports issued on or after June 30, 2017.

The Center for Audit Quality recently issued Form AP – Auditor Reporting of Certain Audit Participants: A Tool for Audit Committees, which is intended to help audit committees understand the Form AP requirements. Also, the tool assists audit committees in discussing the role of audit participants with their engagement partner and company management and helps prepare audit committee members to anticipate potential questions that may arise as a result of these new disclosures.