Audit Insider | June 2026

Summer is officially here, and that means the World Cup is well underway (with the U.S. being one of the hosts for the tournament!), holiday travels, and days at the pool.

June has been a busy month for the profession, and there’s more ahead. The PCAOB voted unanimously to propose targeted amendments to QC 1000 and, for the first time, issued a public request for comment on its standard-setting and research agendas; comment deadlines are approaching on two major SEC proposals, and the ACFE’s Report to the Nations is out with findings worth your attention.

It doesn’t stop here. Next week, my colleague Annette Schumacher and I are sitting down with SEC leaders for a special Audit Insider webinar. So far, this is a summer for the books!

Read on for what I’m tracking.

Please note that these perspectives are my own. If this email was forwarded to you, subscribe here so that you never miss a public company auditing update.

SEC Semiannual Reporting

The debate over public company reporting frequency continues to develop. Earlier this month, the SEC put out a call for comments on their recent proposal to permit an optional shift from quarterly to semi-annual reporting. The CAQ’s position remains consistent: Auditors are equipped to provide high-quality, independent assurance under any framework regulators establish, and the CAQ will continue to engage constructively as that conversation develops.

SEC Proposals: Comment Deadlines Approaching

Two SEC proposals have comment deadlines in July, and we want to make sure stakeholders have time to weigh in. The SEC’s proposal to allow optional semiannual reporting, where companies could file a new Form 10-S instead of quarterly 10-Qs, had a comment deadline of July 6, but stakeholders can still submit comments. The CAQ’s position remains consistent: auditors are prepared to provide high-quality, independent assurance under whatever framework regulators establish. Our comment letter can be found here, and we encourage stakeholders to submit their perspectives directly to the SEC.

Separately, the SEC proposed amendments to update filer status definitions and emerging growth company accommodations. These could represent significant changes for current and new public companies, and if the amendments went into effect, a significant number of U.S. public companies would no longer be subject to Section 404(b) and would not be required to have auditor attestation on internal controls. We encourage stakeholders to review both proposals and submit comments here, which are due July 20th.

CAQ Comment Letter to the FDIC on the GENIUS Act

The CAQ submitted a comment letter to the FDIC in response to its proposed rulemaking implementing the GENIUS Act, which establishes a federal framework for permitted payment stablecoin issuers. The CAQ supports the FDIC’s objective to enhance transparency, reliability, and accountability in the stablecoin market, and our comments focus specifically on the aspects of the proposed rulemaking that affect public company auditors.

Key recommendations include clarifying which entities are subject to PCAOB versus AICPA auditing standards, specifying that monthly examination engagements be performed in accordance with AICPA attestation standards at the reasonable assurance level, and encouraging the FDIC to explore an annual attestation engagement over internal controls as an additional mechanism for enhancing market confidence. The CAQ also encourages the FDIC to consider existing auditor oversight mechanisms, including the AICPA Peer Review program, when designing its oversight framework for stablecoin issuers.

PCAOB Chair Shares Priorities for the Next Chapter

Speaking at the USC SEC Financial Reporting Conference, PCAOB Chair Demetrios Logothetis outlined his vision for a more modern, stakeholder-focused PCAOB. A central theme of his remarks was “reclaiming the voice of the profession,” emphasizing the importance of incorporating the experience of practitioners into the Board’s work while continuing to advance investor protection and audit quality. He also highlighted priorities including inspection modernization, technology and AI, enhanced stakeholder engagement, and strengthening confidence in the financial reporting ecosystem. ​​​​​

PCAOB Proposes Targeted Amendments to QC 1000

On June 9, the PCAOB voted unanimously to seek public comment on a targeted set of proposed amendments to QC 1000 and related PCAOB forms and reporting rules. The stated goal is to improve coherence with other quality management standards and potentially reduce compliance costs without compromising the PCAOB’s investor protection mission.

Key proposed changes include rescinding the “design-only” requirement and the External QC Function requirement for the largest firms, providing increased flexibility in filling certain roles in the QC system, reducing the documentation retention period from seven to five years, allowing firms to choose their evaluation date, and aligning more closely with the international standard, ISQM 1. QC 1000 remains slated to take effect on December 15, 2026.

The CAQ submitted a comment letter to the PCAOB earlier this week sharing our perspective.

Voices from the PCAOB Board on QC 1000

Alongside the supplemental proposal, several PCAOB board members released individual statements that offer useful insight into the ongoing discussion around QC 1000.

While Chair Logothetis, Board Members Calabria and Botic generally express support for the proposal, Board Member Laughton’s statement provides an additional perspective on the challenges and opportunities associated with implementation. Viewed together, the statements highlight a board working through important questions about how to strengthen audit quality while ensuring new requirements can be implemented effectively across firms of different sizes and structures.

The CAQ has consistently emphasized the importance of a QC 1000 framework that is both rigorous and workable, and we will continue to engage as the comment process unfolds.

Requests for Public Comment on PCAOB Standard-Setting

The PCAOB has issued a Request for Public Comment seeking feedback on its standard-setting and research agendas, its overall approach to standard setting, and the potential impact of the SEC’s recent proposal to allow optional semiannual reporting. The request is part of the Board’s effort to increase transparency and ensure future standard-setting priorities reflect the views of investors, audit committees, preparers, auditors, and other stakeholders.

Among the topics the PCAOB is considering for future standard-setting or research activity are data and technology, fraud, critical audit matters (CAMs), noncompliance with laws and regulations (NOCLAR), firm and engagement performance metrics, and auditor independence.

The CAQ encourages stakeholders to review the request and consider sharing their perspectives directly with the PCAOB. Comments are due August 7, 2026.

Leadership Updates at the PCAOB

The PCAOB has announced several notable leadership developments in recent weeks. Most significantly, Chief Auditor Barbara Vanich has announced her departure from the Board on July 15. We appreciate Barbara’s contributions to the PCAOB’s standard-setting efforts and her engagement with stakeholders across the profession, and we wish her continued success in her next chapter.

The Board has also named Ying Compton as its Chief Economist. We congratulate Ying on her new role and look forward to continuing our engagement with the PCAOB’s Office of Economic and Risk Analysis as the Board advances its policy, research, and standard-setting priorities.

These developments come as the PCAOB continues to build out key leadership positions, including openings in the Chair’s Office for a Special Advisor for Technology and Head of Strategic Communications as well as the upcoming search for a new Chief Auditor. We encourage interested professionals to consider these exciting opportunities and stay engaged with the Board’s evolving work.

Fighting Fraud

ACFE’s Occupational Fraud 2026: A Report to the Nations

The ACFE released its 2026 Report to the Nations, the 14th edition of what remains the most comprehensive global study on occupational fraud. This year’s edition carries additional significance: 2026 marks 30 years since the very first edition of the report was published, and the new edition compares data and trends against findings from 1996, providing a unique window into how the occupational fraud landscape has evolved over three decades.

The findings this year paint a consistent picture, with some notable data points for auditors. Cases analyzed caused more than $3.4 billion in losses, with a median loss of $104,000 per case. Tips were again the most frequently used detection method, accounting for 43% of cases, with more than half of those coming from employees. On the controls side, organizations with effective anti-fraud controls in place, including management review, proactive data monitoring, and surprise audits, consistently experienced lower losses and faster detection.

For auditors, the findings are a useful calibration point for fraud risk assessment and the design of audit procedures. The Anti-Fraud Collaboration will have more to share on the report’s implications for practitioners and governance professionals in the coming weeks.

The Audit Effect: The Evolving Role of the Auditor

CAQ Hosts Second Annual PPEC Summit

In June, we convened thought leaders from across the profession for our second annual Professional Practice Executive Committee Summit (PPEC) for a full day of dialogue focused on the most pressing issues facing the profession.

The Summit brought together a diverse group of professionals, including national office leaders and subject-matter experts from our member firms for keynote remarks and panel discussions. Keynote discussions with current and former regulators provided insight into how regulators set priorities and engage with stakeholders to drive changes. Throughout the event, leaders from our member firms shared views on the work we have done around current topics like quality control, auditor independence, PCAOB inspections, and generative AI.

As the profession continues to navigate change, the PPEC remains committed to fostering collaboration and advancing dialogue on the issues that matter most.

Audit Insider Webinar, July 2026

If you’re tracking regulatory reporting developments, this one is worth your time. On July 13 at 2:00 PM ET, I’ll be talking with SEC Chief Accountant Kurt Hohl and Heather Rosenberger, Chief Accountant in the SEC’s Division of Corporation Finance, along with my CAQ colleague Annette Schumacher Barr. The conversation will focus on the regulatory reporting issues public companies and their auditors are navigating right now. We’ll cover current SEC initiatives and recent regulatory proposals — the kind of developments that are shaping decisions in boardrooms and audit committees today.

Reserve your spot here and earn 1 CPE credit for attending.

37th Annual ACFE Global Fraud Conference, Boston

The 37th Annual ACFE Global Fraud Conference takes place July 12-17 in Boston, with the main conference running July 13-15 in person and virtually. The event is expected to draw more than 5,500 attendees across 90+ educational sessions and 100+ speakers. Featured speakers include AI and deepfake detection expert Dr. Hany Farid, OCCRP co-founders Drew Sullivan and Paul Radu, and whistleblower and advocate Noelle Webb, among others. The CAQ and ACFE will be co-hosting a roundtable on the sidelines. If you’re planning to attend, I hope to see you there.