PCAOB’s Balancing Act Seeks Better Audit Quality Without Overburdening Auditors

Overview


Eugene Goldman, lead author of a new book on the Public Company Accounting Oversight Board (PCAOB), said of the Board’s inspection process that “auditing firms prepare vigorously in advance of inspections to get ready, they work hard to respond to questions as well as respond to preliminary comments from the inspections staff.” Noting that there are “already robust requirements for auditors,” Mr. Goldman said that for auditing firms with repeat problems, “maybe the best message the PCAOB can do is to send a message via the enforcement program,” and he added, “The SEC recognizes the talent and commitment of the PCAOB.”