The Public Company Accounting Oversight Board is considering whether to force US accounting firms to tell investors the name of the partner in charge of an audit. In the past, the industry has bitterly fought such a provision.
In a comment letter early last year, Deloitte wrote, “We are not aware of evidence showing that disclosing an engagement partner’s name in the audit report would increase the partner’s sense of accountability or that it would cause the engagement partner to exercise greater care in performing the audit.”
Now there is such evidence. In a paper in the September-October issue of the Accounting Review, two accounting professors looked at what happened in Britain after that country began requiring audit partners to be identified in 2009. They examined audits of the same company in the year before the disclosure and the first year of the disclosure. Full story for BostonGlobe.com subscribers.