Investors Press Oversight Board for More Details About Audits

Investors expect more details from auditors to help them interpret corporate financial statements. They’re proposing a series of steps the US audit board could take to encourage more robust disclosures.

The Public Company Accounting Oversight Board should revise its rules and guidance for how auditors decide which thorny accounting estimates warrant disclosure in their annual reports, its Investor Advisory Group proposed on Tuesday.

Those and other ideas will be among a formal recommendation the group plans to submit later this month to address what investors see as a lack of disclosures called critical audit matters, or CAMs. Those disclosures also ...