PCAOB Issues Concept Release Soliciting Comments On Potentially Wide-Sweeping Changes To The Auditor’s Reporting Model

On June 21, 2011, the Public Company Accounting Oversight Board issued a concept release (PCAOB Release No. 2011-003) soliciting public comment on possible changes to the current requirements for the form and content of reports on audited financial statements. The Release responds to concerns expressed by some investors and other users of financial statements to the Board that outside auditors frequently possess useful information regarding a company's financial statements and business activities that is not reflected in the current version of a standard auditor's report. The Release outlines four alternative changes to the current reporting model that the PCAOB believes might serve to increase the transparency and relevance of audit reports to financial statement users: