Auditors Urge SEC to Halt Flawed Finance, Governance Disclosures

Auditors are urging the SEC to reject a plan from the industry’s regulator that would force them to disclose new details about their finances, cybersecurity risks, and network affiliations.

Firms and other audit industry stakeholders said the expanded reporting would stretch the bounds of the Public Company Accounting Oversight Board’s authority and duplicate information auditors already disclose to the board and public, according to comment letters submitted to the Securities and Exchange Commission since mid-December. They argue the board didn’t do enough to address concerns the industry raised with an earlier draft and shortchanged the feedback process.

The PCAOB adopted ...