PCAOB issues report analyzing the impact of estimates and specialists requirements on key stakeholders

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Nov 08, 2022

On December 8, 2022, the Public Company Accounting Oversight Board (PCAOB) released an interim post-implementation review report addressing the initial impact of their requirements, adopted in 2018, related to auditing accounting estimates and the auditor’s use of the work of specialists.

The report and accompanying staff white papers providing additional technical information are available at the following links:

Modernizing standards is one of four key strategic goals for the PCAOB. In pursuit of this goal, the Board has set one of the most ambitious standard-setting agendas in PCAOB history. Given these efforts, the role of robust economic analysis in standard setting is more important than ever for the PCAOB. Post-implementation reviews are an important component of high-quality economic analysis that the PCAOB conducts as part of standard setting to ensure that PCAOB standards are working effectively to enhance audit quality and protect investors.

The staff findings suggest that the new requirements improved auditing practices in some instances and did not result in significant increases in audit hours or audit fees. There is also no evidence of unintended consequences from auditors’ initial implementation of the new requirements. The Board plans to continue to monitor the implementation of the new requirements and their impact on the quality of audit services, as well as on audit committees, preparers, and audit firms.

Review the post-implementation review on PCAOB's website.

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