PCAOB Amendments to Rule 4003 Receive SEC Approval
Amendments to Public Company Accounting Oversight Board (“PCAOB”) Rule 4003, Frequency of Inspections, have been approved by the Securities and Exchange Commission (“SEC”). Effective immediately, the amendments address how often the audit regulator performs inspections of various groups of registered public accounting firms. The amendments also: Remove the triennial inspection requirement for “substantial role only” firms, and replace it with a requirement to inspect at minimum five percent of such firms annually; Preserve the requirement to inspect firms that issue audit reports for an issuer but give the PCAOB permission to decline an inspection for any firm that does not. Read More.
PCAOB’s Franzel Discusses Audit Quality Improvements
At Baruch College’s 15th Annual Financial Reporting Conference earlier this month, Public Company Accounting Oversight Board (“PCAOB”) member Jeanette Franzel spoke on the Board’s evolution in audit oversight and work to safeguard investors and public interest. Specifically, Franzel’s speech focused on the improvements made to audit quality, and how PCAOB inspections and audit firms have contributed to those improvements. She also remarked that audit firms should continue strengthening their quality control systems and monitoring efforts, and advised the PCAOB to consider opportunities to advance its inspection program. A transcript of Franzel’s speech is available on the PCAOB website.