Auditors Pan Bid to Report Their Own Financials as Too Rigid

US accounting firms want more flexible rules for how they disclose details about their own finances, operations, and audit performance, calling proposals to expand mandatory reporting too rigid and costly.

Firms want to continue reporting details about major changes in their business and their financial results as part of routine audit inspections to ensure sensitive or competitive details remain confidential, according to comment letters submitted to the Public Company Accounting Oversight Board over the past month.

Details about how firms manage and staff audits of corporate accounting should continue to be discussed in voluntary transparency reports, rather than a standardized form, they said.

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Draft rules the PCAOB introduced in April would require firms to submit formal financial statements to the regulator and provide more details about their ownership and governance, plus material changes in their business. A related proposal would require firms to publicly report specific metrics that investors and corporate directors could use to compare firms based on the quality of their audits.

Source: Auditors Pan Bid to Report Their Own Financials as Too Rigid