Analysis of PCAOB's Firm and Engagement Metrics Proposal
Honors Capstone Project
1
Advisor(s)
Jacob Crowley
Confirmation
1
Document Type
Paper
Location
ONU McIntosh Center; Wishing Well
Start Date
8-4-2025 2:30 PM
End Date
8-4-2025 2:45 PM
Abstract
In 2024, the Public Company Accounting Oversight Board (PCAOB) created a proposal that would require audit firms to disclose specific metrics on a firm- and engagement-level. The passing of this proposal would create significant challenges for accounting firms since they would need to aggregate data they hadn’t previously collected. Auditors during busy season are known to work upwards of sixty to seventy hours, so the idea of adding more work was not welcomed by the accountants and firms who provided feedback on the initial proposal. The goal of my project is to analyze this proposal, highlight some of the noteworthy metrics, and discuss how this would impact auditors and accounting firms.
However, the PCAOB has since withdrawn its request for approval by the Securities and Exchange Commission since I originally proposed this project. The goal for my project will remain the same with the perspective shifting to what would have happened if this proposal was accepted. The purpose of the new metrics was to benefit investors and the board of directors, providing them with more data to make informed decisions with and a greater level of transparency. There was concern expressed that these metrics would confuse investors and that they would have comparability issues across firms leading to misguided decisions by investors. In addition to my presentation, I plan to create two infographics: one highlighting and explaining metrics that would be most useful for the common investor and one doing the same for a member on the board of directors.
Recommended Citation
Marxman, Becca, "Analysis of PCAOB's Firm and Engagement Metrics Proposal" (2025). ONU Student Research Colloquium. 14.
https://digitalcommons.onu.edu/student_research_colloquium/2025/Papers/14
Open Access
Available to all.
Analysis of PCAOB's Firm and Engagement Metrics Proposal
ONU McIntosh Center; Wishing Well
In 2024, the Public Company Accounting Oversight Board (PCAOB) created a proposal that would require audit firms to disclose specific metrics on a firm- and engagement-level. The passing of this proposal would create significant challenges for accounting firms since they would need to aggregate data they hadn’t previously collected. Auditors during busy season are known to work upwards of sixty to seventy hours, so the idea of adding more work was not welcomed by the accountants and firms who provided feedback on the initial proposal. The goal of my project is to analyze this proposal, highlight some of the noteworthy metrics, and discuss how this would impact auditors and accounting firms.
However, the PCAOB has since withdrawn its request for approval by the Securities and Exchange Commission since I originally proposed this project. The goal for my project will remain the same with the perspective shifting to what would have happened if this proposal was accepted. The purpose of the new metrics was to benefit investors and the board of directors, providing them with more data to make informed decisions with and a greater level of transparency. There was concern expressed that these metrics would confuse investors and that they would have comparability issues across firms leading to misguided decisions by investors. In addition to my presentation, I plan to create two infographics: one highlighting and explaining metrics that would be most useful for the common investor and one doing the same for a member on the board of directors.