PCAOB

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.

The SEC said it would begin identifying companies that are using non-inspected auditors.

Some expressed concerns about lower levels of enforcement, while one suggested the board suffered from a credibility gap.

The Public Company Accounting Oversight Board is regrouping with a slate of new board members recently appointed by the Securities and Exchange Commission, and it approved its fiscal year 2022 budget during a rare open meeting on Tuesday.

The Securities and Exchange Commission has appointed longtime SEC official Erica Y. Williams as the new chair of the Public Company Accounting Oversight Board, and named three new members.

The commission approved a rule to ensure the Public Company Accounting Oversight Board can inspect firms in other countries, especially China.

The board released its 2020 inspection reports Monday for Deloitte, Ernst & Young, KPMG and PwC, showing mixed results.

Deficiencies remained high in 2020, according to a new report from the board.

Technological changes are already making an impact on how auditing firms are carrying out their audits.

The board staff issued guidance on some of the considerations auditors should have about the relevance and reliability of information they get from external sources and plan to use as audit evidence.

The board has issued a supplemental call on its proposals surrounding lead auditors’ responsibilities.

The framework will govern how the board determines if it can’t inspect or investigate a foreign accounting firm.