On April 6, 2021, the PCAOB published two documents addressing 2021 inspections:<\/p>\n
Audit Committee Resource \u2013 2021 Inspections Outlook<\/a>, and<\/p>\n Spotlight \u2013 Staff Outlook for 2021 Inspections<\/a>.<\/p>\n While these documents are directed primarily to auditors, they provide insights to help company management avoid audit surprises and problems.<\/p>\n The Audit Committee Resource<\/a> reinforces the PCAOB\u2019s commitment to \u201cseeking views and feedback from audit committees<\/strong>\u201d through its outreach process.\u00a0 In 2019 and 2020 the PCAOB visited with over 700 audit committee chairs.\u00a0 It also provides audit committee perspectives for areas including:<\/p>\n The Spotlight<\/a> report outlines several inspection process changes and focus areas for 2021.\u00a0 Changes to the inspection process will include reviewing financial reporting and audit risks posed by COVID-19 and reducing the predictability of the inspection process<\/strong>.\u00a0 The PCAOB will select more engagements randomly<\/strong> and inspect more \u201cnon-traditional\u201d audit areas<\/strong>.<\/p>\n The report outlines areas where inspections continue to find deficiencies, such as revenue and accounting estimates.\u00a0 The list of other areas where the staff plans to concentrate inspection resources includes firm quality control systems, how firms comply with independence requirements, fraud procedures, critical audit matters, implementation of new auditing standards, responding to cyber threats, auditing digital assets and supervision of audits involving other auditors.\u00a0 These areas are consistent with those in the Audit Committee Resource.<\/p>\n As always, your thoughts and comments are welcome<\/p>\n","protected":false},"excerpt":{"rendered":" On April 6, 2021, the PCAOB published two documents addressing 2021 inspections: Audit Committee Resource \u2013 2021 Inspections Outlook, and Spotlight \u2013 Staff Outlook for 2021 Inspections. While these documents are directed primarily to auditors, they provide insights to help company management avoid audit surprises and problems. The Audit Committee Resource reinforces the PCAOB\u2019s commitment … Continue reading PCAOB Provides Insights Into the 2021 Inspection Process<\/span> \n