The new board announced its priorities via its updated standard-setting and research agendas. What’s not new? “Other Auditors” and “Quality Control” are still at the top of the list. Both projects have been active for some time. In addition, Data and Technology and Audit Evidence remain on the research agenda.
What’s new? The standard-setting agenda now has projects designated as “short-term” and “mid-term.” In addition to Other Auditors and Quality Control as noted above on the short-term list, the board has added:
- NOCLAR – This refers to Noncompliance with Laws and Regulations
- Attestations Standards
- Going Concern
- Confirmations
On the Mid-term list is:
- Substantive Analytical Procedures
- Fraud
- Interim Ethics and Independence Standards
- Interim Standards
What are interim standards? Upon inception of the PCAOB, all AICPA auditing standards were adopted on an “interim” basis. Many standards have since been updated by the PCAOB. There remains 28 interim auditing standards, 6 interim ethics and independence standards, and 6 attestation interim standards. Are they broken? Not necessarily. But standards should be continuously evaluated and modernized. Therefore, it seems a good effort to take stock of these interim standards.
Review the press release on the PCAOB's website.