Public Company Accounting Oversight Board (PCAOB)

Website: www.pcaob.org

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection.

Recent Developments – Past 90 days


Select News Releases

Staff Audit Practice Alert No. 14: Improper Alteration of Audit Documentation
PCAOB - 04/22/2016
The PCAOB staff published a new Practice Alert which emphasizes that improperly altering audit documentation in connection with a PCAOB inspection or investigation violates PCAOB rules requiring cooperation with the board's oversight activities and can result in disciplinary actions with severe consequences. Improperly altering audit documentation is also inconsistent with an auditor's professional duty to act with integrity and as a gatekeeper in the public securities markets. Evidence identified in connection with certain recent oversight activities has heightened the staff's concern about such misconduct.

PCAOB Releases Staff Inspection Brief Previewing 2015 Inspection Findings
PCAOB - 04/19/2016
PCAOB inspectors found that the overall number of audit deficiencies identified in 2015 decreased compared to the results from 2014. In preliminary 2015 inspection results for annually inspected and triennially inspected firms, the most frequent audit deficiencies continue to be in three key areas:

  • Auditing internal control over financial reporting
  • Assessing and responding to risks of material misstatement
  • Auditing accounting estimates, including fair value measurements

PCAOB Releases Staff Inspection Brief Offering a Preview of Observations from 2015 Inspections of Auditors of Broker-Dealers
PCAOB - 04/19/2016
PCAOB inspectors found deficiencies in the following areas: auditor independence; financial statement audit procedures; audit procedures on the supplemental schedules to the financial statements; the examination of compliance reports and the review of exemption reports under newly applicable PCAOB standards; and engagement quality review.

PCAOB Proposes to Strengthen Requirements for Auditor Supervision of Other Auditors
PCAOB - 04/12/2016
The Public Company Accounting Oversight Board today issued a proposal to strengthen existing requirements and impose a more uniform approach to a lead auditor's supervision of other auditors. The Board requests public comment on its proposal by July 29, 2016.

PCAOB updates standard-setting agenda
PCAOB - 04/07/2016
The PCAOB issued an updated standard-setting agenda, which provides an overview of the board's current standard-setting agenda and outlines key milestones on various standard-setting projects.

PCAOB Issues a Report Describing Inspection Observations Related to Audit Firms’ Communications with Audit Committees
PCAOB - 04/06/2016
This report provides information regarding audit firms' and audit engagement teams' implementation of, and compliance with, AS 1301, Communications with Audit Committees (currently AS No. 16) and other PCAOB rules and standards related to audit committee communications. This report is based on the PCAOB's 2014 and preliminary 2015 inspection results relating to domestic and non-U.S. registered firms.

PCAOB Requests Comment on Engagement Quality Review Standard Under New Post-Implementation Review Program
PCAOB - 04/06/2016
The PCAOB released a request for public comment from the PCAOB Center for Economic Analysis that will inform the first post-implementation review of the overall effect of previously adopted PCAOB rules and standards. The goal of the program is to evaluate whether adopted rules and standards are accomplishing their intended purposes, and identify any unintended consequences, as well as gauge the overall effects of the rules or standards.

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PwC Comment letters

PwC comments on PCAOB's Audit Quality Indicators concept release
PCAOB - 09/29/15
PwC supports a market-based approach to the communication of audit quality indicators. 

PwC comments on the PCAOB's identification of partner and others on new form
PCAOB - 8/31/2015
PwC is supportive of the proposal in the Supplemental Request to disclose the name of the engagement partner and information about certain other audit participants in a newly created PCAOB form (Form AP), rather than the auditor's report.

PwC comments on the PCAOB's use of specialists paper
PCAOB - 8/4/2015
PwC is supportive of the project but offers recommendations to address what we see as potential practical challenges.

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Final Rules

All PCAOB rules adopted by the Board and approved by the Securities and Exchange Commission. For the full list of PCAOB bylaws and rules, please visit the PCAOB website.

Improving Transparency Through Disclosure of Engagement Partner and Certain Other Participants in Audits
PCAOB - 12/15/2015
The PCAOB has adopted new rules and related amendments to its auditing standards that will improve transparency regarding the engagement partner and other accounting firms that took part in the audit. The rules will require disclosure of the name of the engagement partner and information about other accounting firms on new PCAOB Form AP, Auditor Reporting of Certain Audit Participants ("Form AP").

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Proposed Rules

For the full list of PCAOB dockets open for public comment, please visit the PCAOB website.

Proposed Amendments Relating to the Supervision of Audits Involving Other Auditors and Proposed Auditing Standards
PCAOB - 04/12/2016
The PCAOB issued for public comment a proposal to amend its auditing standards to strengthen the requirements that apply to audits that involve accounting firms and individual accountants outside the accounting firm that issues the audit report. The amendments are intended to improve the quality of audits in these circumstances and to align the applicable requirements with the PCAOB's risk-based, supervisory standards. Comments requested by July 29.

Supplemental Request for Comment: Rules to Require Disclosure of Certain Audit Participants on New PCAOB Form
PCAOB - 06/30/2015
The PCAOB is issuing this supplemental request for comment on its 2013 reproposal to require auditors to disclose in the auditor's report the name of the engagement partner and information about certain other participants in the audit. The Board is considering an alternative to disclosure of this information in the auditor's report, whereby the information would be required to be disclosed on a new PCAOB form. This supplemental request for comment seeks commenters' views on disclosure on a new PCAOB form.

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Select Speeches

For a listing of all speeches visit the PCAOB website.

Remarks by James Doty at the PCAOB Open Meeting to Consider Proposing New Requirements for an Auditor's Use of Other Auditors
PCAOB - 04/12/2016
PCAOB Chairman James Doty shared his views on the new proposed amendments relating to the supervision of audits involving other auditors and proposed Auditing Standard, Dividing Responsibility for the Audit with Another Accounting Firm.

Remarks by Jay Hanson at the PCAOB Open Meeting to Consider Proposing New Requirements for an Auditor's Use of Other Auditors
PCAOB - 04/12/2016
PCAOB Board Member Jay Hanson shared his views on the new proposed amendments relating to the supervision of audits involving other auditors and proposed Auditing Standard, Dividing Responsibility for the Audit with Another Accounting Firm.

Remarks by Jeanette Franzel at the PCAOB Open Meeting to Consider Proposing New Requirements for an Auditor's Use of Other Auditors
PCAOB - 04/12/2016
PCAOB Board Member Jeanette Franzel shared his views on the new proposed amendments relating to the supervision of audits involving other auditors and proposed Auditing Standard, Dividing Responsibility for the Audit with Another Accounting Firm.

Remarks by Lewis Ferguson at the PCAOB Open Meeting to Consider Proposing New Requirements for an Auditor's Use of Other Auditors
PCAOB - 04/12/2016
PCAOB Board Member Lewis Ferguson shared his views on the new proposed amendments relating to the supervision of audits involving other auditors and proposed Auditing Standard, Dividing Responsibility for the Audit with Another Accounting Firm.

Remarks by Steven Harris at the PCAOB Open Meeting to Consider Proposing New Requirements for an Auditor's Use of Other Auditors
PCAOB - 04/12/2016
PCAOB Board Member Steven Harris shared his views on the new proposed amendments relating to the supervision of audits involving other auditors and proposed Auditing Standard, Dividing Responsibility for the Audit with Another Accounting Firm.

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