US Audit Board to Scrutinize Firms’ Uptake of Quality Safeguards

The US audit board plans to check how accounting firms are applying new rules for how they police their own work as soon as next year, just months after the requirements kick in, the regulator’s leader said Wednesday.

“We need to test it. We need to validate it,” said Demetrios Logothetis, chair of the Public Company Accounting Oversight Board. He spoke during a meeting with the board’s largest advisory group that includes representatives from audit firms, US companies, and corporate boards.

Firms are set to adopt in December new risk-based quality controls that require auditors to mitigate ...