Working with other auditors can differ from working with people in the same firm, creating challenges in coordination and communication. These challenges can lead to misunderstandings about the nature, timing, and extent of the other auditors’ work and can reduce audit quality.
To address such situations, the amendments, which include changes to existing standards and adoption of a new standard, improve PCAOB standards principally by:
- Specifying certain procedures for the lead auditor to perform when planning and supervising an audit that involves other auditors; and
- Applying a risk-based supervisory approach to the lead auditor’s oversight of other auditors for whose work the lead auditor assumes responsibility.
The amendments apply to all audits conducted under PCAOB standards. Subject to approval by the Securities and Exchange Commission, the amendments will take effect for audits of financial statements for fiscal years ending on or after December 15, 2024.
Review the press release and amendments on the PCAOB's website.