By Cydney Posner

The Public Company Accounting Oversight Board has voted to issue for public comment proposed amendments to its standards that would require registered accounting firms to disclose in the audit report the name of the engagement partner responsible for the most recent period's audit and the names of other accounting firms and other persons not employed by the auditor that took part in the audit (including the internal control audit). The proposal is designed to increase transparency of public company audits by providing investors with information about key participants in the audit. In a change from the original 2009 concept release, in light of concerns that a signature requirement would minimize the firm's accountability and role in conducting the audit, the engagement partner would not be required to sign his or her name on the audit report. Information regarding the names and country locations of, and percentage of time spent by, other participants in the audit would enable investors to determine whether the firm is registered with the PCAOB, has been subject to PCAOB inspection, has a disciplinary history or is located in a country that does not allow PCAOB inspections. Under the proposal, disclosing other participants in the audit would not represent a qualification of the auditor's opinion nor would it change the responsibility of the auditor for the performance of the audit.

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