Resources for Audit Committees
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.
Audit Committee Resource: New PCAOB Requirements Regarding Auditing Estimates and Use of Specialists
To help audit committees enhance their understanding in this area, this resource provides the basics of the new requirements, key takeaways for audit committees, and questions to consider asking auditors.
Conversations with Audit Committee Chairs: COVID-19 and the Audit
Given the unprecedented challenges for auditors, audit committees, and issuers created by the COVID-19 pandemic, we asked audit committee chairs how they are thinking about the effect of COVID-19 on financial reporting and the audit as they perform their oversight duties.
Webinar for Audit Committee Members
The PCAOB hosted a webinar on July 8, 2020 that provided an overview of the PCAOB’s new inspection reports, auditing and inspecting audits in the COVID-19 environment, new and recent auditing standards activity (e.g., estimates, specialists, critical audit matters, and systems of quality control), data and technology, and audience Q&A.
Speakers included PCAOB Chairman Duhnke, Chief Auditor Megan Zietsman, Deputy Director of Inspections Christine Gunia, and Stakeholder Liaison Erin Dwyer.
Conversations with Audit Committee Chairs: What We Heard & FAQs
In 2019, we reached out to nearly 400 audit committee chairs of U.S. issuers whose audits we inspected and offered them the opportunity to speak with us. In comparison, we spoke to only 88 audit committee chairs in 2018.
Audit committee chairs provided informative and valuable feedback. We share their perspectives in this publication, Conversations with Audit Committee Chairs: What We Heard & FAQs, in an effort to provide transparency into the process and as part of the reporting out of what we heard.
The document details what we frequently heard from audit committee chairs, their perspectives on what is working well to help improve audit quality, an overview of our inspections process, and staff responses to frequently asked questions during the conversations.
Audit Committee Resource: Critical Audit Matters (July 2019)
The new requirement for CAMs is a result of the PCAOB’s 2017 standard AS 3101, The Auditor’s Report on an Audit of Financial Statements When the Auditor Expresses an Unqualified Opinion, which made significant changes to the auditor’s report. The standard is intended to make the auditor’s report more informative and relevant to investors and other financial statement users by shedding light on areas of the audit requiring especially challenging, subjective, or complex auditor judgment.
This document aims to inform audit committees as they engage with their auditors on the new CAM requirements.
Staff Guidance on Communication with Audit Committees Concerning Independence
The PCAOB posted staff guidance on PCAOB Rule 3526, Communication with Audit Committees Concerning Independence. The guidance provides background on Rule 3526 and technical guidance for auditors on the independence-related communications required by the rule. The overview document summarizes the staff guidance for audit committees, investors, and other interested parties.
2019 Staff Inspections Outlook for Audit Committees
The PCAOB staff outlined in this inspections outlook for audit committees what audit committees should expect from the PCAOB's 2019 inspections. This publication was a supplement to the Inspections Outlook for 2019.
Implementation of Critical Audit Matters: The Basics
The PCAOB released three staff guidance documents to
support the implementation of the new critical audit matter (CAM). The Implementation of Critical Audit Matters: The Basics document is a high-level overview that may be of interest to audit
committees. In the document, the PCAOB staff address the definition of a CAM, communications of CAMs, interactions with the audit committee and management, and other high-level details about CAMs.