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PCAOB publishes strategic plan for 2013–2017

  • Report document — Deloitte green Image

Dec 02, 2013

The Public Company Accounting Oversight Board (PCAOB) has published its Strategic Plan to guide the Board's programs and operations for 2013–2017. It details the progress made since the 2012–2016 Plan was released and outlines new objectives and strategies for the upcoming five-year period.

The 2013–2017 Strategic Plan highlights the progress made on the following near-term initiatives set forth in 2012:

  • Improving the timeliness, content, and readability of inspection reports, including through outreach designed to improve usefulness of reports — The PCAOB has worked to clear the backlog of older inspection reports and focus on the timelier issuance of more current inspection reports. The staff plans to issue a report in the second quarter of 2014 summarizing the results of 2012 and 2013 inspections.
  • Improving the timeliness of remediation determinations and providing additional information on the PCAOB's remediation process — The staff developed and published information about the quality control remediation process, including the criteria used to assess a firm's remedial actions. The staff is considering publishing additional information about the remediation process, including information based on the staff's experiences with remediation activities across firms.
  • Initiating a project to identify audit quality measures, with a longer-term goal of tracking such measures with respect to domestic global network firms and reporting collective measures over time — The Board is developing a concept release on audit quality indicators.
  • Enhancing the PCAOB's processes and systems to improve analysis and usefulness of PCAOB inspections findings, including comparative analysis across firms over time, in order to better understand audit quality in firms and better inform the PCAOB's standard-setting and its other regulatory activities — The Board is investing in information technology to facilitate the analysis of audit market characteristics, inspection and other regulatory oversight data, and other relevant information.
  • Enhancing the framework for the PCAOB's standard-setting process in order to improve the effectiveness of the process as well as the standard-setting project tracking information provided to the investing public — The PCAOB is reviewing draft documents for (1) an updated and enhanced standard-setting framework that includes overarching tools, principles, policies, and processes associated with PCAOB standard setting, and (2) internal guidance on the use of economic analysis in standard setting.
  • Enhancing PCAOB's outreach to and interaction with audit committees to constructively engage in areas of common interest, including auditor independence and audit quality — The Board will continue to participate in conferences and meetings with audit committee members and focus group meetings with audit committees. After conducting a number of these activities, the Board will determine how to integrate the feedback into its oversight process in order to help maximize the effectiveness.

The PCAOB's 2013–2017 Strategic Plan is the foundation for its 2014 budget. The 2014 budget is subject to approval by the SEC.

For more information, please see the PCAOB's Web site for:

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