Auditors Balk at Regulator’s Push to Expand Their Role – WSJ

Of the three proposals, the one that has most inflamed the profession is an effort to get auditors to be more proactive in flagging possible fraud and other illegal activity by their clients. Last June, the PCAOB took a vote on it, which produced a rare split: Duane DesParte and Christina Ho—the only two certified public accountants on the five-member board—opposed it.

“Auditors are CPAs, not legal experts,” Ho said in her dissent. “The new requirements will significantly expand auditors’ need for expertise from lawyers, legal experts and possibly other specialists, resulting in a substantial increase in audit fees.”

So incensed were audit firms that several called for the PCAOB to issue a revised proposal.

Source: Auditors Balk at Regulator’s Push to Expand Their Role – WSJ