On June 21, 2022, the PCAOB issued Release 2022-002, in which the Board adopted amendments to its auditing standards to strengthen requirements for planning and supervising audits involving accounting firms and individual accountants (“other auditors”) outside the accounting firm issuing the auditor’s report (the “lead auditor”). This alert has been prepared to support auditors in planning audits of fiscal years ending on or after December 15, 2024.
The amendments were designed to improve the quality of audits involving other auditors by increasing the lead auditor’s involvement in and evaluation of the work of other auditors, and to align the applicable requirements with the PCAOB’s risk-based supervisory standards. The Board also adopted a new auditing standard that applies when a lead auditor divides responsibility for an audit with another accounting firm (“referred-to auditor”).
This Alert provides an overview of the provisions to assist auditors and other stakeholders with understanding and applying the standards and the key changes included in the amendments. This Alert is structured as follows:
- Who will be affected and what is the effective date?
- What are the objectives and reasons for the changes?
- What are the key changes?
- How might this impact you?
- What can you do to prepare?
- Resource links
Download the PDF to read the full Alert.