PCAOB Provides Observations From the Target Team’s 2022 Inspections

Today, the PCAOB released a new staff report, "Observations From the Target Team’s 2022 Inspections(PDF).”

The target team is a group of inspectors who execute in-depth reviews across audit firms with a focus on emerging audit risks and other topics. In 2022, the target team focused on inspecting audits of public companies related to three areas:

• First audit engagements post-initial public offering (IPO), including private companies transitioning to public companies through traditional IPOs, as well as private operating companies undertaking business combinations with special purpose acquisition companies;
• Audit firms’ use of shared service centers as part of the audit; and
• Auditors’ consideration of climate-related matters that are potentially material to a public company’s financial statements.

The report provides auditors and other stakeholders with a view into the target team’s work in 2022, including observations (which include deficiencies that resulted in the issuance of comment forms), good practices, and key insights.

Visit the PCAOB’s Staff Publications page for more resources on the PCAOB's activities and observations.

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About the PCAOB

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.