• Register
Return to: Home > News > Regulation > PCAOB issues details on inspection process

PCAOB issues details on inspection process

The Public Company Accounting Oversight Board (PCAOB) has issued a document for audit committees detailing its inspection process and the meaning of reported inspection results.

The PCAOB said the main aim of the document is to help better equip audit committees of public company boards of directors to engage in meaningful discussion with PCAOB-registered audit firms about the results of inspections.

The document provides information about the meaning and significance of PCAOB inspection findings in the context of both engagement reviews and quality control reviews. It also suggests some specific approaches that an audit committee might consider for initiating or enhancing inspection-related discussions with an audit firm.

PCAOB chairman James Doty said the document has been issued in part because of concerns audit committee members have expressed about “how to understand what their auditors say about inspection results”.

The document also highlights certain areas of inquiry that audit committees may wish to address with their auditors. For example:

  •    whether the audit overseen by the audit committee was selected by the PCAOB for an  inspection and whether any findings were made;
  •     potentially relevant inspection findings on other audits performed by the firm;
  •     the firm's response to PCAOB findings; and,
  •     the firm's remedial efforts in light of any quality control deficiencies that may have been identified by the PCAOB.

Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.