The PCAOB leverages economic analysis to more effectively set certain standards, rules, and guidance. Through economic analysis, we evaluate and refine our oversight to ensure that it remains effective.
The PCAOB’s Use of Economic Analysis and Stakeholder Input in Standard Setting
This Spotlight provides an overview of how we conduct economic analysis and use stakeholder input in our standard-setting process. It also includes a mini case study on how the PCAOB has used—and will continue to use—economic analysis and stakeholder input related to the requirement for auditors to determine and communicate critical audit matters in the auditor’s report.
Post-implementation review is an important component of high-quality economic analysis of regulatory decision-making. Post-implementation reviews complement the prospective economic analysis that the PCAOB conducts as part of a rulemaking.
Staff Guidance on Economic Analysis in PCAOB Standard-Setting
For PCAOB staff involved in rulemaking, PCAOB economists and attorneys prepared guidance on the legal framework, elements, and integration of economic analysis.