PCAOB Update and Outlook
Publication Date: December 21, 2018

In a recent speech at the AICPA Conference on SEC and PCAOB Development, PCAOB Director of Registration and Inspections, George Botic, described changes to the PCAOB's inspection program and emphasized the critical role that auditors serve in the capital markets. The primary outcome of the changes, stated Botic, "will be a program that drives continuous improvement in audit quality — through a combination of activities that focus on efficient and effective prevention, detection, deterrence, and oversight of firms' remediation of audit deficiencies." In that regard, he identified the areas where audit deficiencies are frequently observed which include, accounting estimates, internal control and risk assessment. As part of the changes to its program, the PCAOB intends to increase its level of engagement with audit committee chairs of U.S. companies to exchange views on the PCAOBs inspection process.