Concerns About the PCAOB's Release on Possible Revisions to the Auditor's Report

Robert J. Sonnelitter, CPA

In its June 21, 2011, “Concept Release on Possible Revisions to PCAOB Standards Related to Reports on Audited Financial Statements” (Release 2011-003), the Public Company Accounting Oversight Board (PCAOB) sought public comments on potential changes to the auditor's reporting model. The concept release suggests four possible alternatives as improvements for changing the auditor's reporting model ostensibly to increase the transparency and relevance of auditors' reports to financial statement users. The PCAOB suggests that auditors' reports should go beyond providing an opinion about a company's financial statements to provide information about how the auditor reaches the opinion and perhaps provide information regarding a company's financial statements and specific information about the conduct of the audit. The PCAOB presents four alternatives for improving auditors' reports; the alternatives are not mutually exclusive and do not necessarily preclude other alternatives.