POB launches consultation on transparency reports

News Article - 24 May 2012
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The Professional Oversight Board (POB) has launched a consultation on what information auditors of UK listed companies should be obliged to publish.

Consultation findings will help in the formation of compulsory requirements for transparency reporting.

The POB said the reports should include information on how an auditor ensures quality and independence.

It said information on a firm's structure, governance, network arrangements and the way each firm remunerates partners should also be included.

Regulations will eventually be included in the revised EU 8th Company Law Directive on the regulation of auditors, which was agreed earlier this year.

"Transparency reports have a valuable role to play in encouraging audit quality. They can help investors to understand the strengths of a particular audit firm," said Paul George, director of the POB.

"And clear information, for example on a firm's processes and practices for audit quality, provide an incentive for all within the firm to live up to both the spirit and the letter of what the firm has promised publicly."

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