The Commotion Over the Engagement Partner's Name

Allan B. Afterman, PhD, CPA

The PCAOB has, for the third time since 2011, issued proposed rules to require disclosure of the lead engagement partner's name. As originally proposed in October 2011 (and then reproposed in December 2013), disclosure of the engagement partner's identity would be included in the auditor's report. In 2015, the PCAOB proposed an alternative approach under which the engagement partner's identity could be disclosed in a new form (Form AP), which would be fully searchable on the PCAOB's website, rather than in the auditor's report itself. This was a response to constituents' comments expressing concern that identifying the engagement partner within the auditor's report could create legal and practical issues under the federal securities laws. As proposed, however, disclosure in the new form would not preclude the auditor from also voluntarily providing it in the auditor's report.