SEC Approves the PCAOB’s Updated Standard on Requirements Related to the Lead Auditor’s Use of Other Auditors
Aug 15, 2022
On August 12, 2022, the Securities Exchange Commission (the SEC) approved the Public Company Accounting Oversight Board’s (PCAOB) updated standards for audits that involve multiple auditing firms. The amended standards strengthen the requirements for lead auditors who supervise other auditors in an audit, helping to enhance audit quality and protect investors.
The PCAOB’s updated standards make enhancements across two broad areas. First, the amended standards specify certain procedures for lead auditors to perform when supervising other auditors. Second, they require lead auditors to prioritize their supervisory activities around higher-risk areas in the audit.
Review the SEC’s press release on the SEC’s website and the PCAOB’s Release No. 2022-002, Planning and Supervision of Audits Involving Other Auditors and Dividing Responsibility for the Audit With Another Accounting Firm, on the PCAOB's website.
