PCAOB Staff Inspection Brief Reveals Audit Problems Continue
Public Company Accounting Oversight Board (“PCAOB”) inspectors continue to find the same issues during accounting firm inspections that were discovered in previous years. In its 18-page Staff Inspection Brief: Preview of Observations from 2016 Inspections of Auditors of Issuers, the PCAOB identified the following recurring audit deficiencies last year: Auditors’ assessments and responses to the risk of material misstatements Audits of internal controls over financial reporting (“ICFR”) Audits of accounting estimates such as fair value measurements Of the three audit deficiencies identified, the audits of internal controls were the most cited problem among accounting firms. The more common ICFR deficiencies. Read More.
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.