Accounting firms try to block new U.S. disclosure rules about auditors

Auditing firms are urging the SEC to reject the recently adopted PCAOB standards on firm and engagement metrics. EY expressed concerns, stating: “The rule introduces a new public oversight model to issuer audits that… is based on metrics susceptible to misinterpretation.” KPMG echoed the sentiment, arguing that the PCAOB has not demonstrated how the proposed metrics enhance audit quality. The standards require firms to disclose extensive information about audit processes, which some firms believe could be burdensome, especially for smaller firms. AICPA also called for the SEC to refrain from approving the rules, citing significant challenges for mid-sized and smaller firms. While some investor groups support the changes for increased transparency, the overall response from the auditing community has been largely negative.