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US Audit Board Adopts Tough Rules for Supervising Other CPAs (2)

June 21, 2022, 3:03 PMUpdated: June 21, 2022, 7:09 PM

The US audit regulator adopted rules Tuesday that toughen requirements for how firms oversee and coordinate the work of third-party accountants.

The Public Company Accounting Oversight Board voted unanimously for a package governing the supervision of other auditors—a major project that has gone through multiple iterations since the first draft was released in 2016. The updated standards now go to the Securities and Exchange Commission for final approval.

Lead auditors will take on greater oversight of third-party auditors, who often contribute substantial work for audits of multinational companies. The board wants lead auditors to set a clear scope of work ...