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PCAOB rejiggers future agendas

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Summary

The Public Company Accounting Oversight Board (PCAOB) has revised its standard-setting, rulemaking, and research agendas for the upcoming year. This year has seen more standard-setting and rulemaking than the past 10 years combined, and four proposals have already been issued with another expected before the end of December. Four standard-setting projects have been proposed and are expected to be adopted in the coming year, with four more expected to be proposed in 2024. The PCAOB has also added a project on “Inventory” to the mid-term agenda and “Communication of Critical Audit Matters” to its research agenda. Four rulemaking projects have been added to the agenda with one already proposed, one expected to be proposed before the end of December, and two more expected to be proposed next year.

Q&As

What changes has the Public Company Accounting Oversight Board (PCAOB) implemented in its standard-setting, rulemaking and research agendas for the year ahead?
The Public Company Accounting Oversight Board (PCAOB) has revised its standard-setting, rulemaking and research agendas for the year ahead after a series of unprecedented changes this past year.

What progress has the PCAOB made this past year with regards to standard-setting and rulemaking?
The PCAOB has done more in terms of standard-setting and rulemaking this past year than in any of the last 10 years of its existence since it was established by the Sarbanes-Oxley Act of 2002.

What are the four proposals that the PCAOB has already issued and adopted in 2020?
The four proposals that the PCAOB has already issued and adopted in 2020 are "Other Auditors," "Confirmation," "Quality Control," and "Noncompliance with Laws and Regulations."

What rulemaking projects have been added to the PCAOB's agenda this past May?
The four rulemaking projects added to the PCAOB's agenda this past May are "Contributory Liability," "Follow-on Disciplinary Proceedings," "Firm Reporting & Transparency," and "Registration."

Where can the PCAOB's standard-setting, research and rulemaking projects be found?
The PCAOB's standard-setting, research and rulemaking projects can be found on the board's Standard-Setting, Research, and Rulemaking Projects page.

AI Comments

👍 It's great to see that the PCAOB has been able to make such incredible progress in terms of standard-setting and rulemaking this past year! It's great to see that they are committed to modernizing their standards and rules in order to provide the best possible experience for investors.

👎 I'm disappointed that some of the rulemaking and standard-setting projects won't be adopted until next year. It would have been nice to see these changes implemented sooner to ensure that everything is done to the highest quality.

AI Discussion

Me: It's about the Public Company Accounting Oversight Board (PCAOB) and their revisions to their standard-setting, rulemaking, and research agendas for the upcoming year. They've done more in terms of standard-setting and rulemaking this past year than in any of the last 10 years!

Friend: That's really interesting. What are the implications of this?

Me: Well, the PCAOB is committed to modernizing their standards and rules for investors. This could potentially result in more transparency, better quality control, and improved communication of critical audit matters for investors. At the same time, these changes could mean more stringent regulations for accounting firms and auditors, which could lead to increased costs for companies and investors.

Action items

Research the PCAOB's standard-setting, rulemaking and research agendas to gain a better understanding of the changes that have been made.
Follow the PCAOB's Standard-Setting, Research, and Rulemaking Projects page to stay up to date on any new proposals or changes.
Reach out to the PCAOB's Investor Advisory Group to learn more about their input on the Communication of Critical Audit Matters project.

Technical terms

PCAOB: Public Company Accounting Oversight Board.
Sarbanes-Oxley Act of 2002: A federal law that established the PCAOB and set standards for public company audits.
Standard-Setting: The process of setting standards for auditing and accounting practices.
Rulemaking: The process of creating rules and regulations to govern the activities of a particular industry or organization.
Proposals: Suggestions or recommendations for a particular course of action.
Confirmation Standard: A set of standards that must be met in order to confirm the accuracy of financial statements.
Quality Control: A set of procedures and processes designed to ensure that products and services meet certain quality standards.
Noncompliance with Laws and Regulations: A failure to comply with applicable laws and regulations.
Attestation: A formal statement or declaration made by an auditor regarding the accuracy of a company's financial statements.
Going Concern: A concept that a business will continue to operate in the future.
Firm and Engagement Performance Metrics: Measures used to evaluate the performance of a firm or engagement.
Substantive Analytical Procedures: Procedures used to evaluate the accuracy of financial information.
Inventory: A list of items or goods held in stock by a business.
Communication of Critical Audit Matters: The process of informing stakeholders of important audit matters.
Contributory Liability: A legal concept that holds a person or entity responsible for the actions of another.
Follow-on Disciplinary Proceedings: A process of taking disciplinary action against a person or entity for violating a law or regulation.
Firm Reporting & Transparency: The process of providing information about a firm's activities to the public.
Registration: The process of registering a business or individual with a regulatory body.