Friday, April 19, 2024

PCAOB staff offers observations, recommendations for auditors’ evaluation of audit evidence

By John Filar Atwood

The PCAOB issued a staff report that highlights deficiencies the staff has observed in auditors’ evaluation of audit evidence, including information from external sources, and testing of information produced by the company (IPC). The staff noted that it identified deficiencies in 17 percent of the comment forms it issued for each of the 2021 and 2022 inspection cycles where the auditor did not perform sufficient procedures to test the accuracy and completeness of IPC or other data and reports, including information produced by service organizations.

The report, which includes good practices and other staff reminders, is intended to help auditors improve their audits of public companies and broker-dealers.