United States

SEC and PCAOB seek comments from audit committees

FINANCIAL REPORTING INSIGHTS  | 

As previously communicated, in July the SEC published Release No. 33-9862, Possible Revisions to Audit Committee Disclosures, a concept release seeking comment on its audit committee reporting requirements with a focus on the committee’s oversight of independent auditors. The SEC is interested in receiving information about the audit committee and auditor relationship and whether improvements can be made to enhance the information provided to investors about the audit committee’s responsibilities and activities. It is particularly critical that the SEC receives input from audit committees, given their unique understanding of the usefulness and practicality of the ideas presented in the concept release. The SEC’s concept release is available for comment until September 8, 2015.

Also as previously communicated, in July the Public Company Accounting Oversight Board (PCAOB) issued a Concept Release on Audit Quality Indicators seeking comment on the content and possible uses of a potential portfolio of audit quality indicators (AQIs) that it thinks may provide new insights about how to evaluate the quality of audits and how high quality audits are achieved. It is very important that the PCAOB receives input from audit committees as to whether and how they can most directly benefit from AQIs in light of the information already available from auditors and the time available to the audit committee to devote to the use of AQIs. The PCAOB’s concept release is available for comment until September 28, 2015.