This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

PCAOB Issues Staff Inspection Briefs Detailing Scope and Objectives of 2016 Inspections of Auditors of Public Companies and 2016 Inspections of Auditors of Broker-Dealers

  • PCAOB (US Public Company Accounting Oversight Board) (dark gray) Image

Jul 14, 2016

On July 14, 2016, the Public Company Accounting Oversight Board (PCAOB) issued (i) a staff inspection brief detailing the scope, focus, and objectives of its ongoing 2016 inspections of auditors of public companies and other issuers; and (ii) a staff inspection brief detailing the scope, focus, and objectives of its ongoing 2016 inspections of auditors of brokers and dealers.

With respect to its brief on inspections of auditors of public companies and other issuers, the PCAOB will continue to focus on public company audit areas where inspectors have found frequent and recurring deficiencies in recent inspections. This includes: auditing internal control over financial reporting; assessing and responding to risks of material misstatement; and auditing accounting estimates, including fair value measurements. New to the 2016 inspection cycle is a focus on the auditors' implementation of a newly updated auditing standard for related party transactions, Auditing Standard 2410 (currently AS 18), which became effective for audits of financial statements for fiscal years beginning on or after December 15, 2014. The PCAOB also considers the current economic environment and related developments in determining the scope and focus of inspections. In 2016, in particular, an economic factor under consideration is the effect on multinational public companies of the recent significant appreciation in the U.S. dollar index. Other economic factors include: increased merger and acquisition activity; continued search for higher yielding investment returns in a low interest rate environment; and continued fluctuations in oil and natural gas prices.

With respect to its brief on inspections of auditors of brokers and dealers, the PCAOB will focus on audit areas and attestation procedures where inspectors previously found deficiencies, as well as auditor independence and engagement quality review. PCAOB inspectors also are reviewing the audit work for related party transactions to evaluate compliance with the newly updated Auditing Standard 2410 (currently AS 18).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.