On October 8, 2020, the Public Company Accounting Oversight Board (PCAOB) published its Staff Update and Preview of 2019 Inspection Observations
. In 2019, the PCAOB inspected approximately 175 audit firms and reviewed portions of roughly 710 public company audits in the United States and abroad. Through the inspections, the board identified potential areas of improvement for all firms and best practices that enhance audit quality. This PCAOB staff update may lead to a reassessment of risks by the auditor as well as adjustments to the nature, timing and extent of audit procedures in future audits.
In this Flash Report, we highlight some of the most notable areas the PCAOB underscored in the findings.