Auditor reporting model modifications: Practical insights from the academic community

Abstract

Public Company Accounting Oversight Board (PCAOB) Concept Release No. 2011-003 (PCAOB 2011a) proposes changes that may require auditors to disclose qualitative information about management and the audit. While there is evidence that a change may be necessary, it is unclear how the proposed changes would impact auditors. Based on our practitioner and educational experiences, we discuss potential impacts of these proposed changes on the current audit environment. We provide insights and recommend that the PCAOB perform additional research concerning this proposed standard prior to implementation to gain a more thorough understanding of all relevant issues.