On April 9, 2024, the PCAOB issued two proposals, Firm and Engagement Metrics, and Firm Reporting, that would expand reporting requirements by requiring audit firms to make publicaly available both firm-wide and individual client engagement information. Comments on both proposals are due June 7, 2024.
The metrics the PCAOB has proposed more disclosure and standardization of are already accessible to corporate boards, but According to Chair Williams, the purpose of these proposals is to “strengthen PCAOB oversight and equip investors, audit committees, and others with clear, consistent, and actionable data related to the audit.”
This summary is not intended to be an endorsement or rejection of these proposals, their objectives, or the notion of mandating reporting requirements for certain metrics. Rather, this analysis is intended to (1) provide an overview of the proposed requirements, (2) raise awareness of the proposals within stakeholder groups whose audit engagement data could be made public as a result of implementation, and (3) encourage stakeholder groups the PCAOB believes will benefit from this information to share their perspectives with the PCAOB, whether through the comment letter process, requested meetings with PCAOB Board members and/or staff or otherwise, on the proposed requirements.