PCAOB

The new standard for audit confirmations would replace an interim standard that hasn't changed for two decades.

The board released its latest inspection reports on Deloitte & Touche, PricewaterhouseCoopers, KPMG and Ernst & Young, plus BDO USA and Grant Thornton.

The board voted yesterday that local authorities are not obstructing its ability to conduct inspections in the mainland and Hong Kong.

The board is stepping up its enforcement activities with a mostly new slate of board members.

As PCAOB inspections in China move forward, U.S. auditors should use caution in engagements with Chinese-based companies.

Auditing firms have been relying increasingly on outside specialists for audit engagements since the Public Company Accounting Oversight Board unveiled a new standard governing their use.

The board is finding deficiencies in about one-third of the audits it inspected in 2021.

The average number of critical audit matters per audit report has declined over time, while the proportion of audit reports that communicate only a single CAM has increased.

The board levied sanctions and fines totaling $7.7 million against three of KPMG's member firms in the U.K., India and Colombia.

Auditing firms can expect enhanced inspections, strengthened enforcement and higher penalties, says Public Company Accounting Oversight Board Chair Erica Williams.