Quality controls and accounting estimates that have historically caused the most trouble for auditors will be among the top focus areas for U.S. audit inspections in 2019.
The Public Company Accounting Oversight Board released inspection guidance Dec. 6 to the firms it regulates. The board is reassessing its inspection process and said that some changes could impact audit inspections next year.
Large audit firms are inspected annually as part of the board’s mission to ensure effective audits and ultimately the reliability of financial reports. Smaller firms are inspected every three years. Inspections historically focused on the most high-risk audits.