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Investors show strong response to partner IDs

Tammy Whitehouse | April 26, 2018

Investors indeed react when they know the name of an engagement partner on an audit, although it may not be the reaction regulators expected when they required audit firms to give names.

The Public Company Accounting Oversight Board began collecting and publishing the names of engagement partners on all public company audit engagements under a controversial standard that took effect in 2017. Firms are required to file Form AP with the PCAOB after an audit is complete to identify the engagement partner on each audit as well as individuals or firms outside the principal firm that contributed to the audit conclusion.

While members of the PCAOB initially gunned for engagement...

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