PCAOB Publishes Staff Inspection Brief Providing Information about 2017 Inspections of Auditors of Public Companies

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Aug 30, 2017

On August 30, 2017, the Public Company Accounting Oversight Board (PCAOB) published a staff inspection brief providing information about its ongoing 2017 inspections of auditors of public companies and other issuers.

Key areas of focus for PCAOB inspectors in 2017 include:

  • Audit areas where inspectors have identified deficiencies in the past, such as assessing and responding to risks of material misstatement
  • Audit areas affected by recent economic developments, including the high rate of merger and acquisition activity and fluctuations in oil and natural gas prices
  • Financial reporting areas that require significant judgment, including going concern considerations and income tax disclosures
  • An audit firm's compliance with new transparency rules (Form AP)
  • Preparation for new accounting standards for revenue recognition and lease accounting
  • Work by other auditors on multinational audits
  • The auditor's use of information technology, particularly software audit tools
  • The audit firm's system of quality control

In 2017, the PCAOB plans to inspect approximately 195 registered firms that audit public companies, of which 11 are subject to annual inspection. Among the 195 firms inspected in 2017, approximately 55 are non-U.S. firms in 26 countries or jurisdictions.

Review the press release and Staff Inspection Brief on the PCAOB's website.

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