NEW YORK, Nov. 22 (Xinhua) -- Large accounting firms will have to submit financial statements annually to the U.S. audit regulator for the first time, among new requirements that have faced pushback from auditors but have received support from many investors, reported The Wall Street Journal (WSJ) on Friday.
The Public Company Accounting Oversight Board on Thursday voted 4-1 to bolster the rules around firms' reporting annually and for special circumstances, such as a filed lawsuit or private-equity investment. The U.S. audit watchdog also voted 4-1 on a separate rule to require hundreds of firms to publicly disclose a set of eight metrics, ranging from auditor turnover to partner involvement, and work experience.
"The moves are the latest in a series of measures issued to strengthen oversight over accounting firms despite their concerns that the rules would significantly expand their responsibilities with needless extra work," noted the report. "The requirements, initially proposed in April, are aimed at standardizing the information provided to investors or the regulator."
These measures will go into effect in 2027, in some cases partially, if the Securities and Exchange Commission approves them. Investors have wanted both sets of proposed changes for years in a bid for greater transparency from audit firms.
