The role of the Public Company Accounting Oversight Board (PCAOB) is to enhance the quality of audits by addressing the issues that are likely to deter improper conduct of “public accounting firms”. Also, board enforces the professional standards and other related rules and regulations governing the audits of public companies. “Public Accounting Firms” are required to comply with the “Standards of Auditing” issued by PCAOB while conducting the audit of a public company. In case of non-compliance, the PCAOB may impose sanctions, monetary penalties, and limitations to perform audit of public companies on a firm or an individual. This discussion involves the instances explaining the PCAOB standard and non-compliance by public accounting firms.
- The public accounting firm failed to document the details of members who prepared and reviewed work papers.
- The firm failed to assemble a complete set of audit documentation till documentation completion date.
- The public accounting firm failed to properly review the engagement team’s work and ensure that all necessary procedures were performed and documented prior to the date of audit report.
- The firm failed to perform the audit procedures in evaluating the assumptions made by the company for impairment analysis.To know the complete key-takeaways from PCAOB order along-with relevant PCAOB standards and non-compliance by public accounting firm.
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