The Public Company Accounting Oversight Board (PCAOB) has introduced a new knowledge check to help auditors evaluate their understanding of AS 2310, The Auditor’s use of confirmation.
This new standard, effective for audits of financial statements for fiscal years ending on or after 15 June 2025, replaces the interim standard, AS 2310, The Confirmation Process.
PCAOB’s knowledge check is designed to highlight various aspects of the new standard, and is part of a series of resources released by the organisation to assist auditors.
The quiz is anonymous, and results will not be publicised or used in PCAOB oversight activities, the non-profit entity said.
Earlier in February 2025, the PCAOB also released knowledge checks for QC 1000, covering risk assessment, roles and responsibilities, and ethics.
The knowledge checks come as the PCAOB recently imposed sanctions on Kesselman & Kesselman, a member firm of PricewaterhouseCoopers International (PwC Israel).
The firm was penalised for breaching quality control standards over five years, from 2017 to 2022, due to improper sharing of answers in internal training tests.
PwC Israel agreed to pay a $2.75m (NIS9.9m) civil penalty without admitting or denying the PCAOB’s findings.
The PCAOB also censured the firm and mandated a review and enhancement of its quality control policies. PwC Israel must report back to the PCAOB within 150 days on the steps taken to ensure integrity in internal training.
The PCAOB has sanctioned ten registered firms since 2021 for similar quality control deficiencies.
The investigation into PwC Israel was conducted by PCAOB enforcement staff, including David Florenzo, Thomas McCann, and Tiffany Johnson, under the supervision of William Ryan and John Abell.
The PCAOB is tasked with monitoring auditors’ compliance with the Sarbanes-Oxley Act, relevant securities laws, professional standards, and both PCAOB and SEC regulations.
