USA: the audit - rethinking its relevance, credibility and transparency

Yesterday, at the SEC and Financial Reporting Institute 30th Annual Conference, the chairman of the Public Company Accounting Oversight Board (James R. Doty) delivered a speech titled Rethinking the Relevance, Credibility and Transparency of Audits: see here. Mr Doty explained that the PCAOB would, this month, be publishing a concept release concerning the auditor's reporting model. He also referred to the work of the PCAOB with regard to audit inspections and the failures identified. Against this background he stated that it was necessary for the PCAOB to consider audit firm tenure and whether there should be a limit on the length of the auditor's engagement. The issues here, and concerning the mindset required of auditors, are to be the subject of a further concept release.