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PCAOB member Jay Hanson speech at the National Audit Committee Forum

  • Speech — Deloitte green Image

Sep 16, 2013

Last week at the National Audit Committee Forum, board member Jay Hanson gave a speech about the PCAOB’s ongoing initiatives related to audit committees, protecting investors, and ensuring audit quality.

Mr. Hanson opened his speech by discussing some of the challenges audit committees have faced since the passage of the Sarbanes-Oxley Act of 2002, including the following:

  • The “complex financial reporting processes.”
  • The “increasingly difficult accounting issues.”
  • The “expansion in the responsibilities of audit committees into areas beyond financial reporting and auditing.”

He stated that the PCAOB will continue to provide support to audit committees by sharing its experiences, inspection findings, and concerns. In the near-term, the PCAOB has outlined six priorities intended to improve transparency and communications with its stakeholders. Mr. Hanson described some of the steps taken by the PCAOB to accomplish the six near-term priorities, including:

  • “Improving the timeliness, content and readability of the reports we issue on firm inspections;
  • Improving the timeliness of determinations we make about whether a firm has addressed quality control deficiencies to our satisfaction and providing additional information on the Board's remediation evaluation process;
  • Initiating a project to identify and report on audit quality indicators;
  • Enhancing our processes and systems to improve analysis and usefulness of inspection findings in order to better understand audit quality and better inform standard-setting and other regulatory activities;
  • Enhancing the framework for our standard-setting efforts in order to improve the effectiveness of the process and the project tracking information provided to the investing public; and
  • Enhancing the Board's outreach to and interaction with audit committees.”

The full transcript of the speech is available on the PCAOB's Web site.

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