March 24, 2021
Published: The CAQ
Confidence in public company financial reporting is essential to the strength and vitality of U.S. securities markets. Company management, audit committees, and internal and external auditors all play important roles in providing investors with reliable financial reports. These roles are reinforced by regulators, including the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB). The PCAOB has responsibility for overseeing the auditors of public companies, which includes performing regular inspections of public company audits and audit firm quality control systems.
The purpose of this guide is to provide an overview of the PCAOB’s inspection program. It describes the PCAOB’s inspection responsibilities, how it conducts inspections, and the content of inspection reports. The guide also discusses how audit firms approach the remediation of deficiencies identified in PCAOB inspections.