PCAOB News

PCAOB Issues Report on Interim Inspection Program for Broker and Dealer Auditors

PCAOB Issues Report on Interim Inspection Program for Broker and Dealer Auditors

The Public Company Accounting Oversight Board yesterday released its first report on the progress of the interim inspection program for auditors of brokers and dealers, providing an overview of the new program and the audit deficiencies identified in the initial group of inspected audits of brokers and dealers. In this first look, carried out over [...]

PCAOB Adopts New Auditing Standard

PCAOB Adopts New Auditing Standard

The Public Company Accounting Oversight Board has adopted Auditing Standard No. 16, Communications with Audit Committees, and amendments to other PCAOB standards. The standard requires enhanced relevance and timeliness of the communications between the auditor and the audit committee, and is intended to foster constructive dialogue between the two on significant audit and financial statement [...]

PCAOB Inks Cooperative Agreement with Dubai

PCAOB Inks Cooperative Agreement with Dubai

The Public Company Accounting Oversight Board has entered into a cooperative arrangement with the Dubai Financial Services Authority (DFSA) for the oversight of auditors that practice in the regulators’ respective jurisdictions. The two regulators plan to hold a formal signing ceremony in January. “For many years the DFSA has been a valued partner as the [...]

PCAOB Reproposes Auditing Standard on Communications

PCAOB Reproposes Auditing Standard on Communications

The Public Company Accounting Oversight Board (PCAOB) has reproposed for comment an auditing standard on Communications with Audit Committees, and other amendments to PCAOB standards. The standard was initially proposed on March 29, 2010. “Communication with audit committees is a fundamental responsibility of any auditor and has a direct and serious impact on the quality [...]

Director of International Affairs to Leave the PCAOB

Director of International Affairs to Leave the PCAOB

Rhonda Schnare, who has led the Office of International Affairs of the Public Company Accounting Oversight Board since its inception, has announced her departure from the PCAOB. Ms. Schnare joined the PCAOB in 2003 and has been the driving force behind the PCAOB’s international diplomatic program around the world. “Rhonda has worked tirelessly with her [...]

PCAOB Inks Cooperative Agreement with Netherlands

PCAOB Inks Cooperative Agreement with Netherlands

The Public Company Accounting Oversight Board has entered into a cooperative arrangement with the Netherlands Authority for the Financial Markets (AFM) for the oversight of auditors that practice in the regulators’ respective jurisdictions. The two regulators plan to hold a formal signing ceremony in January. “The agreement with the Netherlands is a key step forward [...]

PCAOB OKs 2012 Budget, Strategic Plan

PCAOB OKs 2012 Budget, Strategic Plan

The Public Company Accounting Oversight Board has approved its 2011-2015 Strategic Plan and 2012 fiscal-year budget of approximately $227.7 million. The Board approved its strategic plan for 2011-2015 to serve as the foundation for the 2012 budget, as required by the Securities and Exchange Commission’s PCAOB budget rule. The budget is $23.3 million, or 11.4 [...]

PCAOB Bares Standing Advisory Group Members

PCAOB Bares Standing Advisory Group Members

The Public Company Accounting Oversight Board has named 28 new and re-appointed members to its Standing Advisory Group (SAG), as the Board expands the size of the advisory group and increases SAG members’ terms from two years to three years, bringing the total SAG membership to 42. “We continue to find our SAG to be [...]

Alert on Risk Assessment, Response Published

Alert on Risk Assessment, Response Published

The Public Company Accounting Oversight Board has published a Staff Audit Practice Alert to assist auditors in identifying matters related to the current economic environment that might affect the risk of material misstatement in financial statements and, therefore, require additional audit attention. “Today’s volatile economic environment may affect companies’ operations and financial reporting, which has [...]

PCAOB Considers 2012 Budget, Strategic Plan

PCAOB Considers 2012 Budget, Strategic Plan

The Public Company Accounting Oversight Board held an Open Meeting on Wednesday, Nov. 30, at 9:30 a.m., to consider adoption of the PCAOB budget for the 2012 fiscal year and the related strategic plan. Section 109(b) of the Sarbanes-Oxley Act of 2002 requires the PCAOB to establish a budget for each fiscal year no later [...]

PCAOB in Cooperative Arrangement with Taiwan

PCAOB in Cooperative Arrangement with Taiwan

The Public Company Accounting Oversight Board has entered into a cooperative agreement with the Financial Supervisory Commission of Taiwan, aiming to tackle the oversight of auditors that practice in both of the regulators’ respective jurisdictions. “Although we have been doing inspections of Taiwan-based audit firms since 2007, this agreement with Taiwan’s FSC is important to [...]

PCAOB Concludes Fifth International Institute with 36 Countries

PCAOB Concludes Fifth International Institute with  36 Countries

The Public Company Accounting Oversight Board yesterday concluded its fifth annual International Auditor Regulatory Institute. Seventy-seven representatives of auditor oversight bodies and government agencies from 36 countries convened in Washington, D.C., to exchange views on issues that have an impact upon the oversight of auditors. The Institute also afforded participants the opportunity to learn more [...]

Israel Securities Authority Nods Sharing of Information with PCAOB

Israel Securities Authority Nods Sharing of Information with PCAOB

The Public Company Accounting Oversight Board has entered into a cooperative agreement for the exchange of confidential information with the Israel Securities Authority (ISA) to enhance the supervisory oversight of auditors and accounting firms that practice in the two regulators’ respective jurisdictions. PCAOB Chairman James Doty noted that the arrangement is the first of its [...]

PCAOB Issues Statement on Publication of Inspection Report Quality Control Criticisms

PCAOB Issues Statement on Publication of Inspection Report Quality Control Criticisms

The Public Company Accounting Oversight Board has issued a statement ahead of the questions about the publication of previously nonpublic portions of its May 19, 2008 inspection report on Deloitte & Touche LLP. “The quality control remediation process is central to the Board’s efforts to cause firms to improve the quality of their audits and [...]

PCAOB Sanctions Audit Partner

PCAOB Sanctions Audit Partner

The Public Company Accounting Oversight Board has permanently barred a Denver-based audit partner and permanently revoked the registration of a registered public accounting firm because of the audit partner’s participation in audits while subject to a previous bar. PCAOB’s action was based on a decision issued by its Chief Hearing Officer on July 6, 2011, [...]

Accounting Firms Urged to Disclose Engagement Partner

Accounting Firms Urged to Disclose Engagement Partner

The Public Company Accounting Oversight Board has voted to issue for public comment proposed amendments to its standards that would bring greater transparency to public company audits. The proposal would require registered accounting firms to disclose the name of the engagement partner in the audit report and on the PCAOB Annual Report form. It would [...]

PCAOB to Start Exchanging Letters with Japanese Counterpart

PCAOB to Start Exchanging Letters with Japanese Counterpart

The Public Company Accounting Oversight Board has announced a cooperative arrangement with the Japan Financial Services Agency (JFSA) and Certified Public Accountants and Auditing Oversight Board (CPAAOB) of Japan for the oversight of auditors that practice in the regulators’ respective jurisdictions. “This exchange of letters with our Japanese counterparts confirms our mutual commitment to cooperation [...]

Audit Risks in Certain Emerging Markets Revealed

Audit Risks in Certain Emerging Markets Revealed

The Public Company Accounting Oversight Board has published a Staff Audit Practice Alert to increase auditors’ awareness of risks when performing audits of companies with operations in emerging markets. “While this practice alert is for auditors, it also is a good reminder to investors and audit committees of the heightened fraud risk found in some [...]

PCAOB, Norway Regulators Join Forces for Oversight of Audit Work

PCAOB, Norway Regulators Join Forces for Oversight of Audit Work

The Public Company Accounting Oversight Board (PCAOB) will be working with the Financial Supervisory Authority of Norway for the oversight of audit work performed by public accounting firms that practice in the two regulators’ respective jurisdictions. “With this agreement, Norway’s FSA and the PCAOB are joining forces to improve audit quality and protect investors,” said [...]

PCAOB Mulls Changing Auditor’s Reporting Model

PCAOB Mulls Changing Auditor’s Reporting Model

The Public Company Accounting Oversight Board (PCAOB) will discuss the concept release on the possible changes to the auditor’s reporting model, in a public roundtable on Thursday, September 15, 2011. “The Board’s consideration of the audit reporting model is intended to identify meaningful opportunities to enhance the relevance of auditors’ communications with investors,” said PCAOB [...]