PCAOB Release No. 2013-005 August 13, 2013Page 3because it does not provide any other informational value about the particular audit.
During the Board's outreach activities over the last three years, many investors haveexpressed dissatisfaction that the content of the existing auditor's report provides little, if any, information specific to the audit of the company's financial statements to investorsor other financial statement users. During a financial statement audit, auditors obtainand evaluate important information concerning the company, the company'senvironment, and the preparation of the company's financial statements. Many investorshave indicated that they would benefit from additional auditor reporting because they donot have access to, or may not be aware of, much of this information. Additionally, manyinvestors indicated that auditors have unique and relevant insight based on their auditsand that auditors should provide information about their insights in the auditor's report tomake the reports more relevant and useful.
Several commissions examined both the auditor's responsibilities and the form of the auditor's report in the 1970s and 1980s.
These commissions made severalrecommendations to change the auditor's report; however, only a limited number of changes were made in response to these recommendations.
In 2008, the U.S.Department of the Treasury's Advisory Committee on the Auditing Profession ("ACAP")recommended that the PCAOB undertake a standard-setting initiative to consider
See, e.g., Glen L. Gray, Jerry L. Turner, Paul J. Coram, and Theodore J.Mock,
Perceptions and Misperceptions Regarding the Unqualified Auditor's Report byFinancial Statement Preparers, Users, and Auditors
, 25 Accounting Horizons 659, 675-676 (2011); and Theodore J. Mock, Jean Bedard, Paul J. Coram, Shawn M. Davis,Reza Espahbodi, and Rick C. Warne,
The Audit Reporting Model: Current ResearchSynthesis and Implications
, 32 Auditing 323, 323-351 (2013).
Improving the Auditor's Report
, which was presented by theworking group of the IAG on Auditor's Report and The Role of the Auditor, (March 16,2011), available at http://pcaobus.org/News/Events/Pages/03162011_IAGMeeting.aspx.
For example, in 1978, the Commission on the Auditors' Responsibilities(known as the "Cohen Commission") and in 1987, the National Commission onFraudulent Financial Reporting (known as the "Treadway Commission") recommendedchanges to the auditor's report.
The changes expanded the discussion of attributes of an audit andmanagement's responsibility. See Marshall A. Geiger,
Setting the Standard for the New Auditor's Report: An Analysis of Attempts to Influence the Auditing Standards Board
, 1(1993), 38.