PCAOB adopts audit firm reporting rules

Internal Auditor, August, 2008 by A. Cain

THE U.S. PUBLIC COMPANY Accounting Oversight Board (PCAOB) has adopted rules for annual and special reporting of information and events by registered accounting firms. This action is intended to provide investors and the public with more transparent information about external auditors' operations.

The reporting framework includes two types of obligations. First, registered firms must provide annually basic information about the firm and its issuer-related practice, such as issued audit reports or audit fees, during the most recent 12-month period. Second, the rules identify certain events that must be reported by registered firms within 30 days, such as a change in a firm's name or disciplinary proceedings against it.

Following approval by the U.S. Securities and Exchange Commission (SEC), the rules will take effect after 60 days, with the earliest deadline for the special reporting obligations being 90 days after SEC approval. The first annual report will be due by June 30, 2009, for the 12-month period ending March 31, 2009. The PCAOB plans to publish a guide to reporting compliance on its Web site. Information and instructions for the new rules can be obtained from www.pcaob.org.