As reported by the Financial Times earlier this month, accounting firms in the US are opposing new rules that would require auditors of public companies to disclose metrics related to audit quality, like team experience, seniority levels, workload distribution, and annual training.
Although introduced by the Public Company Accounting Oversight Board (PCAOB) in November, the rules need Securities and Exchange Commission (SEC) approval to come into effect. The proposal has received significant opposition from audit firms. Global accounting giant Deloitte wrote a letter to the SEC stating that the disclosures may “confuse investors and other stakeholders, rather than benefit them,” while accounting firm CohnReznick emphasized that “no two firms are identical as are no two issuer audits.
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