In this episode, Matt Kelly and I take a deep dive into the Public Accounting Oversight Board (PCAOB). We consider the role of the PCAOB in both audit standards and internal controls for compliance. What is goodwill, goodwill impairment and how goodwill can be manipulated to create pots of money to pay bribes? We explore the question of whether there the need for a fresh look at SOX 404? We discuss the role of skepticism by auditors. We end with the forthcoming new auditor report format— the SEC is scheduled to approve that new standard regarding a new auditor report format soon and some people want the SEC to veto it. We discuss how new SEC Chair Jay Clayton may handle this by approving it by having a new PCAOB in place which takes a gentler approach to implementation.
For more information on the PCAOB, see Matt’s blog post PCAOB Overhaul Looms
For more on the intersection of compliance, audit and the PCAOB, see Tom’s four-part series with Joe Howell:
What is the intersection of the PCAOB, audit standards, the SEC and Compliance? Matt Kelly and I explore.Click to tweet