WASHINGTON (AP) — A watchdog agency for the accounting industry is proposing that auditors be required to give shareholders more information when they assess the accuracy of public companies' financial reports.
The Public Company Accounting Oversight Board proposed changes Tuesday to the auditor's report, which accompanies a firm's annual report. It is where outside accountants disclose what they found in their review. It would be the first significant change to the auditor's report since the 1940s, the oversight board said.
It could give shareholders fuller information and indicate possible areas of concern about a company's finances.
For example, the report would have to specify areas in which auditors had trouble making a judgment.
The proposal was opened to public comment. If adopted, the change wouldn't take effect until 2015.