The Public Company Accounting Oversight Board on March 13 posted the newest edition of its “Audit Focus” series, this time putting the spotlight on Form AP.
For each audit report that they issue for a public company, PCAOB-registered accounting firms are required to file a Form AP. Through this form, accounting firms disclose key information specific to the audit, such as the engagement partner responsible for the audit, details about the audit report, and the participation of other accounting firms in the audit.
“These disclosures help investors, audit committees, and other stakeholders to understand exactly who has participated in the audits of public companies and how work is distributed among those participants,” the PCAOB said.
The audit regulator said its staff continues to identify a large number of deficiencies related to auditors’ Form AP filings. The deficiencies include, among others, inaccurately reporting whether another accounting firm contributed 5% or more of total audit hours, omitting or incorrectly reporting the percentage of total audit hours contributed by a firm, or providing the incorrect date of the audit report.
This edition of “Audit Focus” includes:
- Key reminders for auditors from the PCAOB rules, standards, and staff guidance related to Form AP;
- Staff’s perspectives on common deficiencies; and
- Good practices that the staff has observed, such as the use of structured templates, guidance on how to complete the templates, or policies mandating review of Form AP information to ensure accuracy and completeness.
“Audit Focus” is a series of PCAOB publications that aims to provide easy-to-digest information to auditors, especially those who audit smaller public companies. Each edition of “Audit Focus” reiterates the applicable auditing standards and/or staff guidance related to the particular topic, as well as offers reminders and good practices tailored to PCAOB-registered auditors of smaller public companies—all with an eye toward protecting investors and improving audit quality.
Previous editions of “Audit Focus” can be found at the PCAOB’s Staff Publications page.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
Tags: Accounting, Auditing, auditing standards, auditors, Form AP, PCAOB
