New US Audit Rules Raise Bar for Quality Control Measures (2)

New US audit rules finalized Monday would require firms to bolster their defenses against risks that could undermine the quality of their work vetting corporate accounting.

Firms would identify risks they face in their daily practice—from the experience of their staff to the use of new technology—that could weaken audit quality, and set up safeguards to offset those threats. The changes are part of a sweeping overhaul of rules that govern how firms manage their audit practices, known as quality controls, that the Public Company Accounting Oversight Board approved in a 4-1 vote.

The board also approved final updates to ...