PCAOB: Supervision of Audits Involving Other Auditors
Tuesday, November 30, 2021
In this comment letter, the CAQ provides views to the PCAOB related to its Release No. 2021-005, Rulemaking Docket Matter No. 042: Second Supplemental Request for Comment: Proposed Amendments Relating to the Supervision of Audits Involving Other Auditors and Proposed Auditing Standard – Dividing Responsibility for the Audit with Another Accounting Firm.
As communications and data-sharing technologies advance and public companies and their auditors become increasingly more global, the CAQ continues to share the PCAOB’s goal of improving audit quality. In our letter we support the PCAOB’s continued consideration of revisions to auditing standards guiding the supervision of other auditors. The CAQ provides specific recommendations regarding changes in the ways lead auditors and other auditors or referred-to auditors interact since the initial release of the Proposed Amendments and Proposed Rule, including the evolution of the workplace resulting from the COVID-19 pandemic. The CAQ provides suggested revisions and seeks additional clarity related to lead auditor determination, extent of documentation required, and communication of risks of material misstatements and responses to those risks.