Quality Control Standards, Including Assignment and Documentation of Firm Supervisory Responsibilities

(Updated Aug. 9, 2019)

Objective


Explore whether there is a need for changes to PCAOB quality control standards in order to enhance audit quality. Changes being explored include prompting firms to improve their quality control systems and to more proactively identify and address emerging risks and deficiencies. The project also will consider impacts of potential standard-setting approaches on large and small domestic and international firms.

Background


PCAOB quality control standards require firms to design and implement a quality control system that provides reasonable assurance that the firm’s personnel comply with applicable professional standards and the firm's standards of quality.

Consistent with the Board's strategic plan, the staff is considering whether revisions to the quality control standards will drive improvement in the quality of audit services. Staff considerations include, among other things, observations from PCAOB oversight activities, relevant research, input from the SAG and other outreach, and activities of international audit regulators, as well as PCAOB initiatives related to root cause analysis and audit quality indicators. The staff also is monitoring developments related to the IAASB proposed quality management standards.

Status


The staff is developing a concept release for the Board's consideration in the fourth quarter of 2019. The concept release would seek public comment to inform the direction of the standard-setting project.