This publication covers:

• What is Robotic Process Automation and why is it important?
• The latest developments
• What this might mean for the IAASB

Review the publication on the IAASB's website.

Ms. Corden is a partner with Deloitte Canada who is responsible for leading audit methodology, policies and guidance, including the firm's ISQM 1 implementation.

Review the press release on the IAASB's website.

Expanding the information CPAB discloses

In September, CPAB outlined planned changes to how we will disclose information about the results of our regulatory assessments.

Beginning in 2023, CPAB will publish information on recent enforcement and other regulatory actions imposed on audit firms.

2022 outreach overview

Here's a summary of CPAB's 2022 publications:

CPAB Exchange

Publications in the CPAB Exchange series highlight important issues and share practical insights with a view to prompting productive dialogue with audit firms and audit committees.

In 2022, they published the following:

• Going concern thematic review focuses on ways for auditors to more proactively assess going concern and underscores the importance of identifying early warning indicators and consistently applying professional skepticism.
• Fraud thematic review, also published in May, outlines steps that auditors could take to enhance the quality of their fraud risk identification and assessments, and identifies opportunities to enhance existing standards.
• Auditing in the crypto-asset sector report provides important insights and recommendations for those auditing the existence of crypto-assets held in custody by third parties.

Inspections reports

Twice annually, CPAB publishes the results of our inspections work. The full-year report on inspections conducted in 2021 was published in March. The interim report, published in October, provided a snapshot of themes and insights from our audit quality assessment work in the first portion of 2022.

Strengthening audit quality

In 2022, they published two additional papers intended to strengthen audit quality:

• The March 2022 report Audit evidence: Strengthening audit quality highlighted common deficiencies related to the appropriate application of professional skepticism and identification and evaluation of fraud risk factors.
• The report System of quality management call to action: Strengthening audit quality, published in October 2022, was designed to assist audit firms as they implement their system of quality management to comply with the new quality management standards.

The PCAOB is proposing to replace AS 2310, The Confirmation Process, in its entirety with a new standard, AS 2310, The Auditor’s Use of Confirmation. The purpose is to strengthen and modernize the requirements for the confirmation process. In doing so, the Board noted that AS 2310 is an important standard for audit quality and investor protection, as the audit confirmation process touches nearly every audit. However, the standard was initially written over 30 years ago and has had minimal amendments since its adoption by the PCAOB in 2003.

Re­view the press re­lease and proposed new standard on the PCAOB's web­site.

The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 addressing quality management at the firm level. This includes the revised definition of engagement team and leadership and direction, supervision, and review responsibilities.

Review the press release and fact sheet on the IAASB's website.

In keynote remarks at annual AICPA conference, Chair Williams tells firms: “Resist complacency, sharpen your focus and meet your responsibility to verify the honesty our system depends on with a vigilance that is worthy of [investors’] trust.”

Review the full speech on the PCAOB's website.

Topics covered in the report include:

1. recurrences in audit deficiencies and higher deficiency rates observed in 2021;
2. observations on quality control systems; and
3. good practices related to internal control over financial reporting, accounting estimates related to business combinations, critical audit matters, auditor independence, supervision of audits, and engagement quality review.

Review the press release and report on the PCAOB’s website.

Key findings of the follow-up report include:

• “The average number of CAMs per audit report has declined over time, and the proportion of audit reports that communicate a single CAM has increased.”
• “Investor awareness and use of CAMs continues to develop.”
• “The staff has not found evidence of significant unintended consequences from auditors’ implementation of the CAM requirements.”

To accompany the report, the PCAOB also released the following two staff white papers that provide “technical detail and additional information related to the methodologies by which the PCAOB gained information to support the findings in the interim analysis reports”:

• Second Stakeholder Outreach on the Initial Implementation of CAM Requirements
• Second Econometric Analysis on the Initial Implementation of CAM Requirements.

Review the report and postimplementation review page on the PCAOB’s website.

Review the FAQ on the AASB's website.

The proposed standard, if adopted, would replace the current QC standards in their entirety and would provide a framework for a firm’s QC system that is grounded in proactively identifying and managing risks to quality, with a feedback loop from ongoing monitoring and remediation designed to drive continuous improvement. Among other provisions, the proposal would foster a more structured approach where a firm would annually evaluate its QC system and report the results of its evaluation on new Form QC.

Review the following on the PCAOB's website:

• Press release
• Proposed standard
• PCAOB Chair Erica Y. Williams' remarks on the proposal