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Audits Audit Reports

Troutman Pepper Locke

PCAOB Delays NOCLAR Proposal - Proposal Would Require Auditors to Assess Corporate Compliance With Laws and Regulations

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The Public Company Accounting Oversight Board (PCAOB) has delayed final action on its controversial June 2023 Noncompliance with Laws and Regulations (NOCLAR) standards proposal. The PCAOB website now indicates that the next...more

WilmerHale

PCAOB Inspection Findings Offer Valuable Reminders About Auditor Independence

WilmerHale on

Auditor independence has long been a foundational element of audit quality, and recent findings from the Public Company Accounting Oversight Board (PCAOB) underscore the importance of auditor independence and the need to be...more

Baker Botts L.L.P.

In Split Decision, SEC Approves New Audit Quality Control Standard QC 1000

Baker Botts L.L.P. on

On September 9, 2024, three of the SEC’s five Commissioners voted to approve the new PCAOB Quality Control Standard QC 1000 A Firm’s System of Quality Control. The new standard will substantially revise and refine public...more

DLA Piper

SEC Approves PCAOB Rule Amendment That Expands Individual Auditor Enforcement Liability

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The Securities and Exchange Commission (SEC) approved a proposed amendment to Public Company Accounting Oversight Board (PCAOB) Rule 3502. The amended rule expands enforcement liability for associated persons who...more

Troutman Pepper Locke

PCAOB Proposes Massive Expansion of the Auditor's Role

Troutman Pepper Locke on

On June 3, the Public Company Accounting Oversight Board (PCAOB) proposed sweeping new auditing standards (PCAOB Release No. 2023-003) that would require auditors to consider a company’s noncompliance with laws and...more

Porter Hedges LLP

Human Resources Compliance Audits (Part 1)

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An internal audit of a company’s human resources practices can be used to mitigate potential liabilities by preemptively identifying areas of exposure and proactively implementing corrective measures. Further, by engaging...more

Mayer Brown Free Writings + Perspectives

The SEC’s Office of the Chief Accountant (“OCA”) on Audit Quality and Investor Protection Under the Holding Foreign Companies...

On September 6, 2022, the OCA released a statement regarding audit quality and investor protection under the Holding Foreign Companies Accountable Act (“HFCAA”).  The statement reiterates the importance of high quality audits...more

Cooley LLP

Is time running out under the HFCAA?

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In December 2020, the Holding Foreign Companies Accountable Act, co-sponsored by Senators John Kennedy, a Republican from Louisiana, and Chris Van Hollen, a Democrat from Maryland, was signed into law. The HFCAA amended SOX...more

Cooley LLP

Blog: SEC removes Duhnke as PCAOB Chair

Cooley LLP on

On Friday, the SEC announced that it had “removed” William D. Duhnke III from the PCAOB and designated Duane M. DesParte to serve as Acting Chair, effective Friday. Duhnke has been serving as Chair since January 2018. The SEC...more

BCLP

Be Aware - SEC Implements Holding Foreign Companies Accountable Act (HFCA) Requirements

BCLP on

The SEC recently announced its adoption of interim final amendments to certain forms, including Form 10-K and Form 20-F, to implement the congressionally mandated document submission and disclosure requirements of the Holding...more

Skadden, Arps, Slate, Meagher & Flom LLP

Holding Foreign Companies Accountable Act Poised To Be Signed Into Law

On December 2, 2020, the U.S. House of Representatives approved the Holding Foreign Companies Accountable Act (Act). The Act is identical to the bill the U.S. Senate passed in May 2020. Most significantly, the Act requires...more

Cooley LLP

Blog: SEC preparing proposals to implement recommendations regarding emerging market listings

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For over a decade, the PCAOB has been unable to fulfill its SOX mandate to inspect audit firms in “Non-Cooperating Jurisdictions,” or “NCJs,” including China. To address this issue, in May, the Senate passed the Holding...more

Ballard Spahr LLP

GC Insights: SEC Office of Chief Accountant Issues Statement Reminding Management, Auditors, and Audit Committees of Continued...

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The Securities and Exchange Commission (SEC) issued a Statement of the Chief Accountant of the SEC, Sagar Teotia, outlining activities and concerns of the Office of the Chief Accountant (OCA) in responding to the impacts of...more

Mayer Brown Free Writings + Perspectives

Critical Audit Matters

At the recent 2019 AICPA Conference on Current SEC and PCAOB Developments, representatives of the SEC provided updates on a number of emerging issues, including implementation of the critical audit matters (“CAMs”)...more

Cooley LLP

Blog: How have companies adapted to CAMs?

Cooley LLP on

In this report, Critical Audit Matters: Public company adaptation to enhanced auditor reporting, Intelligize examines data from a survey, conducted by SourceMediaResearch/Accounting Today, of 171 compliance specialists at...more

Cooley LLP

Blog: Deloitte looks at first round of CAMs

Cooley LLP on

AS 3101, the new auditing standard for the auditor’s report that requires disclosure of critical audit matters, is effective for audits of large accelerated filers for fiscal years ending on or after June 30, 2019. And that...more

Stinson - Corporate & Securities Law Blog

Will All Audit Reports Include CAMs?

A question some ponder is whether all audit reports will include a discussion of critical audit matters, or CAMs. The answer is “yes” if you consider the 11 audit reports issued by the Big 4 on and after August 1 for large...more

Stinson - Corporate & Securities Law Blog

Big 4 Audit Firm Issues First CAM

To my knowledge this 10-K includes the first critical audit matter, or CAM, issued by a Big 4 firm.  The CAM is straightforward and does not reflect negatively on the company or its audit committee or cast doubt on its...more

Smith Anderson

PCAOB Provides Guidance on Critical Audit Matters

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On July 11, 2019, the Public Company Accounting Oversight Board (PCAOB) issued two companion pieces providing “insights” into the PCAOB’s requirements for the presentation of critical audit matters (CAMs) in the auditor’s...more

Cooley LLP

Blog: PCAOB offers help for audit committees about CAMs

Cooley LLP on

The PCAOB has just released a new resource for audit committees about critical audit matters, designed to “inform audit committees as they engage with their auditors on the new CAM requirements.” The new auditing standard for...more

Cooley LLP

Blog: Tips on CAMs at PLI panel

Cooley LLP on

An article in the Federal Securities Law Reporter reports on some tips gleaned from a discussion of, what else, “critical audit matters” on a PCAOB panel at PLI’s 34th Midyear SEC Reporting and FASB Forum. The new auditing...more

Cooley LLP

Blog: New PCAOB guidance on auditor communications regarding CAMs

Cooley LLP on

The PCAOB has just published new guidance on auditors’ communication of critical audit matters in the auditor’s report. The guidance includes some new FAQs related to how auditors should describe their principal...more

Stinson - Corporate & Securities Law Blog

PCAOB Provides Guidance on Communications of CAMs

The PCAOB posted to its website a staff guidance document, A Deeper Dive on the Communication of CAMs, developed to support implementation of the new critical audit matter requirements....more

Mayer Brown Free Writings + Perspectives

PCOAB Releases Preview of 2018 Audit Inspection Findings

In May, the Public Company Accounting Oversight Board (“PCAOB”) posted a preview of its staff’s observations made in relation to audits conducted in 2018....more

Cooley LLP

Blog: CAMs may be coming, but in the EU, KAMs have already arrived

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As you may recall, auditors of large accelerated filers will be required to report on CAMs—critical audit matters—in their auditor’s reports for fiscal years ending on or after June 30, 2019 and in auditor’s reports for all...more

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