The Board adopted the following amendments:ĪS 1206, Dividing Responsibility for the Audit with Another Accounting Firm, was adopted. Applying a risk-based supervisory approach to the lead auditor’s oversight of other auditors for whose work the lead auditor assumes responsibility.Specifying certain procedures for the lead auditor to perform when planning and supervising an audit that involves other auditors and.To address such situations, the amendments improve PCAOB standards principally by: These challenges can lead to misunderstandings about the nature, timing, and extent of the other auditors’ work and can reduce audit quality. The PCAOB noted that working with other auditors can create challenges in coordination and communication. “These amendments will require audit firms to ensure that lead auditors sufficiently plan, supervise, and evaluate the work of other auditors.” “Today, after an extensive process of analysis and public input regarding the lead auditor’s use of other auditors, the Board is taking action to improve audit quality and strengthen investor protection,” said PCAOB Chair Erica Y. The amendments, which include changes to existing standards and adoption of a new standard, aim to improve the quality of audits where other accounting firms or individual accountants outside the accounting firm that issues the auditor’s report (the “lead auditor”) perform important work on the audit. On June 21, 2022, the Public Company Accounting Oversight Board (PCAOB) adopted amendments to its auditing standards that apply to audits involving multiple audit firms.
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