PCAOB 2024 Third Quarter Recap
Public Company Accounting Oversight Board (PCAOB)
The PCAOB oversees the audits of public companies and SEC-registered brokers and dealers.
This recap presents key PCAOB developments and news for the third quarter of 2024. For more on the PCAOB’s work to protect investors, please sign up for updates here.
Upcoming Dates
The fourth of the PCAOB’s 2024 forums on auditing in the small business environment and on auditing broker-dealers will take place in Miami on October 9, 2024. The in-person event will be hosted by Board Member Christina Ho. Register for the forum here.
Enforcement
PCAOB Sanctions Five Audit Firms for Violations Related to Audit Committee Communications or Reporting Requirements. On September 24, the PCAOB announced settled disciplinary orders sanctioning four audit firms for violating PCAOB rules and standards related to communications that firms are required to make to audit committees. Separately, the PCAOB also sanctioned one audit firm for violating PCAOB rules related to required reporting to the PCAOB.
Standard Setting and Rulemaking
Chair Williams’ Statement on the U.S. Securities and Exchange Commission’s (SEC) Approval of Three PCAOB Standard-Setting and Rulemaking Actions That Will Protect Investors. On August 20, the SEC voted to approve AS 1000, General Responsibilities of the Auditor in Conducting an Audit; changes to PCAOB standards that clarify certain auditor responsibilities when using technology-assisted analysis; and amendments to PCAOB Rule 3502, Responsibility Not to Knowingly or Recklessly Contribute to Violations.
Chair Williams’ Statement on SEC Approval of New PCAOB Quality Control Standard. On September 9, Chair Williams issued a statement following the SEC’s approval of a new PCAOB standard designed to lead registered public accounting firms to significantly improve their quality control (QC) systems.
Inspections
PCAOB Posts 2023 Annual Inspection Reports Alongside Staff Observations and New Charts To Boost Transparency. On August 15, the PCAOB posted inspection reports for all 2023 annually inspected firms, including the six U.S. Global Network Firms. The reports were accompanied by a new staff Spotlight publication providing an overview of staff observations from the 2023 inspections.
The PCAOB also published new charts on its website illustrating much of the data in the U.S. GNF and U.S. annual Non-Affiliate Firms (NAF) inspection reports for the first time as part of ongoing efforts to increase transparency in inspection data.
Inspection Reports. During the third quarter, the PCAOB published 53 inspection reports. Learn more about our firm inspection reports. We also issued our Annual Report on the Interim Inspection Program Related to Audits of Brokers and Dealers.
Staff Publications. The PCAOB released the following staff publications to help auditors, audit committees, investors, and preparers understand the PCAOB’s activities and observations:
Engagement
PCAOB Engages with Students
On September 9, Board Member George R. Botic hosted students and faculty from the Master of Accounting program at William & Mary’s Raymond A. Mason School of Business.
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Board Member Botic met with 2024 PCAOB Scholars Matthew Hovelsrud and Karalyn Timmes, from William & Mary’s Raymond A. Mason School of Business.
Board Member Thompson visited the University of Vermont Grossman School of Business in September to celebrate the 15th anniversary of its Master of Accountancy Program.
Board Member Anthony Thompson spoke to The PhD Project's Accounting Doctoral Students Association during its conference in Washington, DC in August. Mr. Thompson shared how the PCAOB is driving audit quality.
The PCAOB Hosts Forums for Auditors of Small Businesses
The PCAOB hosted the third of its 2024 forums on auditing in the small business environment and on auditing broker-dealers in Denver on September 12, 2024. The in-person event was hosted by Board Member Kara M. Stein.
Board Member Stein met with University of Colorado Denver PCAOB Scholars Gerardo Velazquez-Ramos (2023-2024), Semyon Safronov (2024-2025), and Karli Behrens (2024-2025).
Investor Advisory Group (IAG) Holds Meeting. Discussion topics at the September 26 meeting included the IAG’s presentation to the Board on audit committees’ audit-related engagement with investors, emerging issues in audit firm ownership structures and funding arrangements, cyber risk on external audits, and the IAG request for the public to submit examples of critical or key audit matters.
PCAOB Seeks Nominations for Advisory Groups. On July 29, the PCAOB opened nominations for members of its Investor Advisory Group (IAG) and Standards and Emerging Issues Advisory Group (SEIAG). Appointed members would serve from January 1, 2025 to December 31, 2026. The deadline for submissions closed on September 6, 2024.
A Record 676 Students Named PCAOB Scholars for the 2024-2025 Academic Year. On August 1, the PCAOB announced that a record 676 students from U.S. colleges and universities were selected to receive a scholarship for the 2024-2025 academic year, up from 369 scholarship awards in 2023 and 250 in 2022. This year, each PCAOB Scholar received a $15,000 award, up from $10,000 previously.
Job Openings
We are hiring mission-driven professionals interested in a career with purpose, competitive benefit offerings, and work-life flexibility. Visit our website for career opportunities with the PCAOB.
About the PCAOB
The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.
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UC Irvine Merage School Of Business MPAc Candidate
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