PCAOB Updates Standard-Setting and Rulemaking Agendas Following Significant Modernization Progress in 2024

The staff of the Public Company Accounting Oversight Board (PCAOB) today posted updated standard-setting and rulemaking agendas, reflecting the significant progress that the Board has made in 2024 to further advance its strategic goal of modernizing standards and rules to better protect investors.  

“The PCAOB continues to achieve significant results and advance our investor-protection mission in 2024 by modernizing our standards and rules that have fallen out of date after decades without substantial revision,” said PCAOB Chair Erica Y. Williams. “We look forward to building on our progress as we close out 2024 and head into the new year.”  

2024 Modernization Progress 

In 2024, the PCAOB: 

• Adopted a new standard designed to lead registered public accounting firms to significantly improve their quality control (QC) systems, replacing QC standards that were developed and issued by the auditing profession before the PCAOB was established in 2002. 

• Adopted a new auditing standard that enhances and consolidates a group of standards, adopted on an interim basis by the PCAOB in April 2003, addressing the general principles and responsibilities of the auditor, such as due professional care and professional skepticism. 

• Adopted amendments to certain PCAOB auditing standards to clarify auditor responsibilities when using technology-assisted analysis of information in electronic form. 

• Adopted a rule amendment enabling the PCAOB to hold associated persons accountable when they negligently, directly, and substantially contribute to firms’ violations. 

• Proposed requiring public reporting by audit firms of certain firm and engagement metrics.  

• Proposed modernizing the firms’ reporting to the PCAOB of certain financial, governance, and network information. 

• Proposed replacing an outdated auditing standard on substantive analytical procedures.  

• Proposed a new rule that would protect investors from misinformation about PCAOB registration and oversight and an amendment allowing the Board to deem a firm’s registration withdrawn after two consecutive reporting years of omitted annual reports and annual fees. 

Information regarding the effective dates of recently adopted standard-setting projects can be found on the Standard-Setting, Research, and Rulemaking Projects page.  

Standard-Setting and Rulemaking Project Updates 

The following updates were made for projects listed on the Standard-Setting, Research, and Rulemaking Projects page. 

Short-Term Standard-Setting Agenda 

• The Board will consider adopting amendments relating to Firm and Engagement Metrics in 2024. 

• The Board will consider proposing a new Going Concern standard in 2025. 

• The Board will consider adopting a new Substantive Analytical Procedures standard in 2025. 

• The project formerly known as Other Reporting has been renamed to Auditor Reporting in Specified Circumstances. 

Mid-Term Standard-Setting Agenda 

• A new project has been added: Subsequent Events and Other Matters Arising After the Date of the Auditor’s Report. 

Rulemaking Agenda 

• The Board will consider adopting amendments related to Firm Reporting in 2024. 

• The Board will consider adopting amendments related to the Registration program in 2024.