PwC commented on the PCAOB’s proposed amendments relating to the supervision of audits involving other auditors and proposed auditing standard on dividing responsibility for the audit. We support the PCAOB’s consideration of enhancements and promotion of consistency in the auditor’s performance when executing its supervisory responsibilities in an audit involving other auditors. We agree the level of interaction between the lead auditor and other auditors is important to audit quality, and we support actions that lead to increased and improved communications between auditors. We also support the Board’s consideration of a risk-based approach, as we agree the lead auditor’s supervision of other auditors should be commensurate with the risks of material misstatement at locations audited by other auditors, as well as the competency of the other auditors. We provided a number of observations which we believe will enhance the proposals in line with the Board’s intent to develop a risk-based approach.
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