The Public Company Accounting Oversight Board (PCAOB) has issued a revised standard-setting agenda that includes the addition of two projects slated for short-term action. The PCAOB has also announced four new projects aimed at improving PCAOB rules to protect investors.
The rulemaking projects focus on enhancing investor transparency and enforcement of PCAOB rules and standards. Both the standard-setting and rulemaking projects can be found on the Standard-Setting, Research, and Rulemaking Projects page.
Commenting on this, PCAOB chair Erica Williams said: “The PCAOB is pursuing one of the most ambitious standard-setting agendas in its history, and the updates reflect the solid progress that we are making to carry out that agenda.
“Our new rulemakings also show our commitment to making enhancements that will allow the PCAOB to execute our mission to protect investors more effectively and efficiently.”
Standard-Setting Project Changes
The following are changes related to standard-setting projects:
Two projects moved to the agenda for short-term action: The PCAOB’s short-term list shows those standard-setting projects where a Board action (e.g., proposal or adoption) is anticipated in fewer than 12 months. The short-term list now includes Firm and Engagement Performance Metrics, which previously was listed on the PCAOB’s Research agenda. Substantive Analytical Procedures was moved to the short-term list from the mid-term category.
Two projects added to mid-term category: Mid-term projects are those projects where PCAOB staff are actively engaged but Board action is not anticipated in the next 12 months. On the mid-term list, the PCAOB added projects on Use of a Service Organisation and Interim Financial Information Reviews.
New Rulemaking Projects
While separate from PCAOB standards, the four new rulemakings included in this update consider how PCAOB rules could be enhanced in the following areas: firm reporting and transparency, contributory liability, follow-on disciplinary proceedings, and registration.
Proposed changes to PCAOB rules from these rulemaking projects will go through a public notice-and-comment process to gather input from investors and other stakeholders.