The Public Company Accounting Oversight Board is asking for more stakeholder input on a proposal to strengthen the requirements for audits that involve multiple audit firms.
As audits and the companies getting audited become more complex, it’s growing increasingly common for the auditor who’s issuing the report to rely on the work of one or more other audit firms, which, the board noted, can result in miscommunication, confusion and worse among auditors from different organizations.
The PCAOB had asked for comment on this issue — and the kinds of responsibilities the lead auditor should undertake to guarantee the quality of the audit — back in 2017, but has now issued a
“It is important for investor protection that the lead auditor sufficiently plans, supervises, and evaluates the work of other auditors,” said PCAOB acting chairperson Duane DesParte in a statement. “With the supplemental request for comment we issue today, we look forward to receiving further stakeholder input as we move to strengthen existing requirements.”
Final comments are due by Nov. 30, 2021; once the board has considered them, it hopes to finalize its amendments.
