PCAOB seeking input on proposal to strengthen audit requirements

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The Public Company Accounting Oversight Board (PCAOB) is seeking additional input regarding a proposal seeking to strengthen requirements for audits involving multiple audit firms.

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The PCAOB has issued a second supplemental request for comment, noting the comment period would be open through Nov. 30, 2021.

“It is important for investor protection that the lead auditor sufficiently plans, supervises and evaluates the work of other auditors,” PCAOB Acting Chairperson Duane M. DesParte said. “With the supplemental request for comment we issue, we look forward to receiving further stakeholder input as we move to strengthen existing requirements.”

Per the PCAOB, as it relates to some audits, the lead auditor issues the auditor’s report, but other auditors perform work as a means of aiding the lead auditor in obtaining appropriate audit evidence supporting the lead auditor’s opinion(s).

The PCAOB also acknowledged working with other auditors can differ from working with personnel within the same audit firm — forming potential coordination and communication challenges.

The proposal, according to the PCAOB, seeks to adjust certain requirements as a means of considering the lead auditor’s role in the audit and enhance amendment readability and usability while facilitating implementation.

The PCAOB intends to consider comments received and make a decision regarding final amendments adoption after the public comment period concludes, officials noted.

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