Updates to U.S. audit standards for quality control could address firm governance, staff duties, performance evaluations, and even monetary incentives—all with an aim to drive audit quality.
Any revisions to audit quality control standards should be principles-based and set the same expectations for firms of all sizes, according to feedback from the largest advisory group to the Public Company Accounting Oversight Board.
“Audit quality is job No. 1. Therefor everything’s got to be aligned with that,” said Bob Herz, former chair of the Financial Accounting Standards Board, who now serves as an advisor to the PCAOB.
The PCAOB will...