Corporate Governance Flash Report - July 2016

July 2016

PCAOB Issues Staff Guidance for Audit Firms Filing the New Form AP

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In June 2016, the Public Company Accounting Oversight Board (PCAOB) issued staff guidance for audit firms filing the new Form AP Auditor Reporting of Certain Audit Participants and Related Voluntary Audit Report Disclosure Under AS 3101, Reports on Auditing Financial Statements. The guidance covers certain provisions and provides examples, such as assigning engagement partner identification numbers and estimating audit hours when disclosing the participation of other accounting firms, among other things. The PCAOB also launched a web resource page on Form AP for investors, auditors, and others. 

The staff guidance supports the final PCAOB rules, adopted by the PCAOB in December 2015 and approved by the SEC in May 2016, requiring disclosure of the engagement partner and other firms participating in an audit. 

As a reminder, audit firms are required to file Form AP for public company audit reports issued on or after: 
•    January 31, 2017 – for engagement partner names
•    June 30, 2017 – for other audit firms that participated in the audit 

Early next year, investors and others will be able to conduct searches of the Form AP database  from the PCAOB website. Users will be able to search by engagement partner name, audit firm, or public company name. Over time, the database can be used to evaluate data points about the engagement partner, including industry experience and number of years as engagement partner of a particular company.

We encourage you to explore the resources cited as you fulfill your duties on behalf of the boards and companies that you serve. For additional audit committee along with financial accounting and reporting tools and resources, visit BDO’s Board Governance page.

For questions related to matters discussed above, please contact Amy Rojik or Jan Herringer.