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PCAOB’s 2020 Inspection Focus and Audit Quality Tips Revealed

by Ken Tysiac | Dec 19, 2019   ()

The PCAOB’s inspections of audit firms in 2020 will continue to focus on areas that have been challenging for firms in recent years, George Botic, CPA, the PCAOB’s director of Registration and Inspections, said Wednesday.

During a presentation at the AICPA Conference on Current SEC and PCAOB Developments in Washington, D.C., Botic said areas of focus for the PCAOB’s 2020 inspections will include a greater emphasis on the audits of larger issuers with higher market capitalization.

Topical areas of focus will include:

  • A firm’s system of quality control.
  • Auditor independence.
  • Implementation of new standards.
  • How firms address recurring audit deficiencies.
  • Other areas such as digital assets, cybersecurity, and consideration of omitted procedures.

In the first quarter of next year, the PCAOB also expects to debut a new report format for its 2018 audit year inspections of the six largest U.S. firms. The report will maintain the traditional Part I and Part II sections. The format also will reduce boilerplate language.

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Source: Journal of Accountancy

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