PCAOB Issues Staff Inspection Brief on Audit Risks
The latest Staff Inspection Brief by the Public Company Accounting Oversight Board (“PCAOB”) features information on the agency’s ongoing inspections of auditors of public companies and other issuers. Announced on August 30, the Staff Inspection Brief provides guidance on audit risks that PCAOB inspectors seek to address. The brief also encourages auditors to improve audit quality. In addition, the Staff Inspection Brief highlights the issues PCAOB inspectors consider during auditor inspections. Such issues include whether the auditor was cognizant of how the issuer created its estimates, dealt with forthcoming accounting changes, and used proper software tools to review data that met audit objectives.