The PCAOB House-Cleaning and You

pcaob

I’m all for a thorough spring cleaning, but this is next-level: the Securities and Exchange Commission fired the head of the Public Company Accounting Oversight Board on Friday, and told the remaining three board members that they’ll be gone too as soon as the SEC finds suitable replacements.  SEC commissioner Gary Gensler announced the news…

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PCAOB Stands Pat on Data Analytics

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The PCAOB released an update Thursday on its thinking about how to use data analytics and related technologies in financial audits, and it seems that the regulator will maintain for now its belief that no new auditing standards to address technology are necessary. For several years now, the PCAOB has run a small task force…

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PCAOB Previews Inspection Focus

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The PCAOB plans to shake up how it will inspect audit firms this year, with a specific focus on how the pandemic has challenged financial reporting and audit risks and a promise to “reduce the predictability” of this year’s inspections.  The agency published a staff alert on Tuesday outlining its priorities for 2021 inspections, so…

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PCAOB Report on Pandemic Auditing

pandemic

The PCAOB just published a mid-pandemic progress report on how audit firms are handling their work during coronavirus. Compliance and audit executives may want to give it a read for hints about how auditors are trying to inspect your internal controls and which risks are high priority. The report, Staff Observations and Reminders During the…

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PCAOB Member Uncorks on Agenda

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One of the five members of the Public Company Accounting Oversight Board blasted his own agency on Wednesday, saying that the regulator’s plans for the next 12 to 18 months are “a tragic mistake” that ignore the needs of investors and undermine the credibility of corporate financial reporting. The statement came from PCAOB board member…

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PCAOB Shakeup! What It Means for You

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The audit and compliance community rarely sees a stealth news dump from regulators over a long weekend, but we have some now: SEC chairman Jay Clayton is replacing the leading cybersecurity expert on the Public Company Accounting Oversight Board with a White House aide. Kathleen Hamm, a member of the PCAOB since January 2018, will…

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Marcum Dinged on Independence Failures

marcum

Oh lord, we have another contestant for most unfortunate business misconduct of 2019. The audit firm Marcum has been sanctioned for violating rules for audit firm independence, where poor oversight from Marcum’s partner in charge of audit firm independence played a starring role.  The PCAOB hit Marcum with a fine of $450,000, plus another $50,000…

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New PCAOB Guidance on Estimates, Specialists

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Heads up, audit professionals: the PCAOB has released fresh guidance on how to audit accounting estimates and how to use specialists in complex audit work — two issues that are the subject of new audit standards going into effect in 2021. Each subject has two pieces of staff guidance, so that’s four PDFs for you…

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Questions on KPMG Ethics Fiasco

kpmg

By now you might already know the news: KPMG, one of the largest audit firms in the world, has agreed to pay $50 million to the Securities and Exchange Commission to settle charges from two separate scandals at the firm — one related to KPMG partners offering jobs to audit industry regulators in exchange for…

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Deloitte Inspection Report Released

Deloitte

The PCAOB has released its latest inspection report for Deloitte, finding that 20 percent of the audits examined were flawed enough to question whether auditors had reached defensible conclusions. This is the first inspection report we’ve seen this year for a Big 4 firm, and also the first one issued since new leadership took over…

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