Preventing audit extinction

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

Oct 24, 2019

On October 24, 2019, the Public Company Accounting Oversight Board (PCAOB) released a speech by J. Robert Brown, Jr., PCAOB Member, where he discusses how the audit has evolved to retain relevance in response to the interests of investors and other market forces.

In his speech, he also highlights on the types of information increasingly used by investors that are currently outside the audit, including alternative performance measures, or what I will call in this speech Non-GAAP financial measures, key performance indicators (KPIs), XBRL, and sustainability disclosure. Finally, it helps to start conversations among investors, audit firms, and other stakeholders about relevance and possible changes that will help prevent auditors from becoming the weavers of the 21st century.

Review the full speech on the PCAOB's website.

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