PCAOB Releases Protecting Investors Report
Discussing the organization’s activities and successes of 2014, the Public Company Accounting Oversight Board (“PCAOB”) has published its 2014 Annual Report, Protecting Investors (Annual Report). In line with its normal program of inspecting registered accounting firms that conduct audits of public businesses and related issuers, the PCAOB reviewed 219 firms and studied portions of over 780 audits last year. Furthermore, per its interim program of inspecting firms that audit brokers and dealers registered through the Securities and Exchange Commission (“SEC”), the PCAOB reviewed 66 firms and included parts of 118 audits. The Annual Report also features a rundown of disciplinary orders handed out by the PCAOB.
Highlights from 2014 include the PCAOB issuing staff audit practice alerts regarding revenue recognition and the going concern assumption; new standards for related parties and important, unusual transactions; staff guidance on attestation standards; and the consultation paper on auditing estimates and fair value measures. In addition, the Annual Report outlines the PCAOB’s plans for upcoming standard-setting, such as auditing accounting estimates, improving clarity by disclosing the audit engagement partner and other specified participants, going concern, and quality control.