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Private Company Auditors Face Overhaul in Quality Control Rules

Feb. 4, 2021, 7:53 PM

Accounting firms that audit private companies could see new rules for how to manage their risk and ensure consistent, high-quality work under a proposal that mirrors international requirements.

The Audit Standards Board, part of the American Institute of CPAs, released a batch of three proposed quality management standards Thursday that feature key changes from current practices involving self-inspections and routine audit reviews.

Under the proposed rules, audit firms would design policies and checks that address the risks that their practices routinely face, to replace a checklist of requirements that may not always match the complexity of their clients or ...