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Objective

Consider how PCAOB quality control (QC) standards should be revised to focus firms on improving their QC systems. 

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Background

Effective quality control (QC) systems are crucial for consistent high quality audits and other engagements under PCAOB standards. PCAOB QC standards require a firm 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.

The project has been informed by observations from the Board's oversight activities, information gathered through outreach efforts, relevant academic research and literature, and developments and trends in internal control, enterprise risk management, quality management frameworks, corporate governance, and audit firm governance.

The project has taken into account developments since PCAOB QC standards were first adopted, including evolving developments in audit practices and in use of technology, and improvements in monitoring and remediation processes.

The project is considering revisions that would result in a future PCAOB QC standard that is scalable, so a firm can tailor its QC system appropriately based on the firm's size and complexity and the nature of the engagements it performs, commensurate with applicable risks to quality.

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Status

The staff is developing a proposed standard for the Board’s consideration.