PCAOB

The board said Thursday that it is still meeting with Chinese authorities to discuss the ability to inspect auditing firms in that country.

The Public Company Accounting Oversight Board issued a Spotlight publication Monday containing some observations and reminders for auditing firms about relying on outside service providers for electronic audit confirmations.

The board is reportedly making progress on talks with Chinese authorities on enabling access to inspections of local firms.

China and the U.S. should be able to reach an agreement on the auditing dispute, according to a senior executive at China’s top investment bank.

The board censured PricewaterhouseCoopers’ Canadian firm and imposed a $750,000 penalty, saying over 1,200 employees shared answers to tests during mandatory training courses.

The Securities and Exchange Commission eased up dramatically on accounting and enforcement activity last year during a period of transition at the SEC, but the Public Company Accounting Oversight Board increased its enforcement amid a shakeup at the PCAOB.

The Public Company Accounting Oversight Board is once again forming an Investor Advisory Group and starting a new Standards and Emerging Issues Advisory Group after the old board came under sharp criticism for scrapping its outside advisory groups.

The board has a new leader, Erica Williams, after its new chair was sworn in Monday by the Securities and Exchange Commission in a virtual ceremony.

When companies suddenly replace their auditing firms, the required SEC disclosures are often vague and may be a signal of a forthcoming restatement, but timing is a crucial factor.

The updates are mostly technical, but some cover remote-work arrangements for some seconded employees during the pandemic.