PCAOB Issues Concept Release On Auditor's Reporting Model; Comments Due Sept. 30
June 22, 2011
FEI Summary

On June 21, 2011 the Public Company Accounting Oversight Board voted to issue a Concept Release on the Auditor's Reporting Model. As noted in the PCAOB's press release:

Auditor's Discussion & Analysis
Joining the ranks of the MD&A (management's discussion and analysis) and CD&A (compensation discussion and analysis) required of management by the U.S. Securities and Exchange Commission would be an AD&A (auditor's discussion and analysis), as set forth in the PCAOB's Concept Release.

Assurance On Other Information; Clarification of Language
Other ideas included in the Concept Release address required and expanded use of emphasis paragraphs; auditor assurance on other information outside the financial statements, and clarification of language in the standard auditor's report.

Public Comment Sought via 30-Day Comment Period, Roundtable
The public comment period on the Concept Release closes on Sept. 30.

PCAOB also announced today it will hold a public roundtable in the third quarter 2011 to obtain additional feedback on the Concept Release.

Further information is available in the PCAOB's Fact Sheet and the archived webcast of the PCAOB board meeting.

See also this edition of Deloitte's Heads Up on the PCAOB Concept Release.  

Updated June 29, 2011 by Edith Orenstein, director, accounting policy analysis and communications, Financial Executives International. This summary does not reflect FEI opinion unless specifically noted above.