On March 25, 2022, the PCAOB issued their “Spotlight 2021 Conversations With Audit Committee Chairs”. It is a great read for all audit committee members, as well as provides good takeaways for not just public companies, but non-public companies as well.
In the publication, the PCAOB summarizes the conversations their inspection staff had with various audit committee chairs. Their discussions included several topics, including:
- Required communications between audit and audit committee (frequently centered around goodwill accounting and impairments and revenue recognition)
- Discussions held with the audit committee outside of the required communications (such as perspective on management/tone at the top and big-picture business trends)
- Auditor strengths and areas for improvement
- Discussion of PCAOB inspection reports
- Quality control systems at audit firms
- Auditor’s use of technology (including increased use and potential challenges)
- Information outside of the financial statements (such as environmental, social, and governance matters)
Read the full publication here.
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