Firms decry PCAOB's proposal on requiring audit signatures
Controversial new audit standards under consideration by the Public Company Accounting Oversight Board to require engagement partners to personally sign corporate audit reports could lead to higher audit fees, rollercoaster stock prices, liability nightmares for accountants, and even threats against auditors, critics of the plan warned.
In a concept release seeking input on the plan, the PCAOB made the case that a signature requirement may improve audit quality by increasing the sense of accountability of the engagement partner for the work performed during the audit, and by providing meaningful transparency to the investing public.
But in comments submitted in response to that release, Big Four firm Deloitte told the audit overseer that the signature requirement would fail to achieve either objective. "The suggested beneficial effects on accountability and transparency are speculative, and the concept release does not present evidence that an engagement partner signature requirement will enhance audit quality," Deloitte said.
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