Spot Inspection of Audit Report Changes Planned for Fall

The U.S. audit regulator is planning a spot examination of how accounting firms are complying with new rules that require more detailed communications with investors.

The Public Company Accounting Oversight Board will pull a sample of audit reports to see how they comply with new rules for critical audit matters, George Botic, the board’s inspection director, said in June 6 remarks at the University of Southern California’s annual financial reporting conference.

• Public report summarizing the review’s findings expected by the end of the year, Botic said.
• The more detailed audit reports will be included in companies’ annual ...