Traditional audit firms, in particular the Big 4, have become more of a consulting firm. Do you believe this could compromise their audits of clients? How?
If you had the final say on who should be the head of the PCAOB, what criteria would you use? Are you for or against the proposed requirement that audit firms identify the lead partner on an audit engagement?
If you were a the lead audit partner in charge of a corporate audit, would you mind being named as such in a new disclosure form from the PCAOB? Why or why not? Does is make any difference that this disclosure is not made part of a regulatory filing with the SEC?
The PCAOB reports to the SEC and the SEC has now made its criticism of the PCAOB public. Should they have done so? What are the implications of the public disagreement? Should former auditors run the PCAOB, rather than attorneys and career governmental employees? Why or why not?
If there are so many deficiencies in the audit of revenues, what do you think are the reasons? What do you propose as a solution? What are possible consequences for investors if revenues are misstated?
In your opinion, is it a good idea for the PCAOB to force the lead audit partner to reveal his identity on an audit engagement? Why? Who benefits from this information? How? Who is potentially hurt? What could be some of the consequences on the lead audit partner?
Congress compelled the PCAOB to back off the proposal to require auditor rotation. Why? Do you think Mr. Pozen’s idea of requiring a request for proposal (RFP) every 15 years is a good one? Why or why not? What problem is it supposed to address?
Why do you think the PCAOB wants to change the auditor’s report? Who would benefit from knowledge of the “critical audit matters”? How would they benefit? What are potential downsides to requiring auditors to report such information?
Name one argument for and one against mandatory auditor rotation? What is your opinion: should firms be required to rotate their auditors? If so, how often?
