PCAOB Staff Paper to Examine Audit Firm Quality Controls
Staff members of the Public Company Accounting Oversight Board (“PCAOB”) have begun work on a consultation paper for possible improvements to audit quality control systems. The PCAOB believes making improvements to an audit firm’s quality controls, including methods for training and supervising employees, could help audit firms prevent and detect more deficiencies before the audit report is issued.
According to the PCAOB’s updated standard-setting agenda, staff members will investigate whether changes to the audit regulator’s quality control standards could prompt firms to improve their quality control systems. Changes may include improvements to how a firm assigns supervisory responsibilities and the documentation of such duties.
A timetable for publication was not provided in the agenda, but the consultation paper is likely to be issued later this year or early 2017.