FOR IMMEDIATE RELEASE

Nov. 21, 2024

CONTACT
Carter Dougherty
carter@ourfinancialsecurity.org

Auditor Watchdog Agency Takes Step to Increase Industry Transparency

Washington, D.C. — The Public Company Accounting Oversight Board (PCAOB) finalized two proposals that would bring much-needed transparency to the audit industry to the benefit of investors and the broader public, for example, by requiring disclosure of partner and manager involvement, workload, and other details of individual audit engagements and firm-wide metrics. These proposals now advance to the Securities and Exchange Commission (SEC), which is required to seek public comment before approving them.

“Too often, auditors have turned a blind eye to corporate fraud, exposing investors and the public to significant harm,” said Natalia Renta, associate director for corporate governance and power at Americans for Financial Reform Education Fund. “Approving the rules would shed light on key information about audit firms and specific company audits. We call on the SEC to act on this proposal promptly in furtherance of its investor protection mission.”

AFREF and 11 organizations submitted a comment letter to the PCAOB in support of a proposal to require public accounting firms to publicly report specified firm- and engagement-level metrics. The PCAOB also approved amending reporting requirements for registered firms.

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