Firms Can Practice Sending New PCAOB Form AP On Board Website But Must Register By Thursday

By:
Chris Gaetano
Published Date:
Oct 25, 2016
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Associate Chief Auditor for the Public Company Accounting Oversight Board Lillian Ceynowa, speaking at the FAE's SEC Conference today, said that firms have the opportunity to practice sending the new Form AP to the PCAOB, but if they want to participate in this test, they need to register with the board by Thursday.

The new Form AP was developed as part of a new board rule, approved earlier this year, that will require that firms disclose more information about audit participants. While the board had initially wanted this information in the audit report itself, comments from stakeholders led the PCAOB to provide the option for that information to be disclosed on its website instead. The Form AP is how firms will send that information to the PCAOB, though Ceynowa noted that if firms place the disclosures in the audit report itself, then they will not have to file the form. 

On the form, firms will have to disclose: 

  • * The name of the engagement partner;
  • * The names, locations, and extent of participation of other accounting firms that took part in the audit, if their work constituted 5 percent or more of the total audit hours; and
  • * The number and aggregate extent of participation of all other accounting firms that took part in the audit whose individual participation was less than 5 percent of the total audit hours.
The information will be available in a searchable database that will be hosted on the PCAOB's website. It is set to go into effect in 2017: the engagement partner will need to be identified for all audit reports issued on or after Jan. 31 2017, and will need to identify other accounting firms for all audit reports issued on or after June 30, 2017. 

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