PCAOB to overhaul audit reviews

The US audit watchdog has suggested that audit firms introduce an independent
partner, not associated with audits, to review audits and
ensure their quality.

The plan could help firms focus on and identify high-risk areas within
audits, the Public Company accounting Oversight Board said.

If the plans go ahead, large firms will have a framework with which to
conduct their own internal reviews of the audits they perform.

‘By focusing the review on higher risks, the proposed standard would increase
the likelihood of identifying and correcting deficiencies in the audit prior to
the issuance of the auditor’s report,’ PCAOB Chairman Mark Olson said.

The board has invited public comments on the issue.

Further reading:

US audit standard aims to fix problems quickly

PwC objects to PCAOB report faulting its audits

Related reading