PCAOB releases review of 2021 inspections, looks forward to 2022 review

By Bryan Strickland

The PCAOB released findings on Wednesday regarding 2021 inspections and shared focus areas for 2022 inspections.

Observations From the Target Team's 2021 Inspections shares auditors' responsibilities and offers observations and good practices in the team's four areas of focus:

  • Fraud;
  • Interim reviews of special-purpose acquisition companies (SPACs) and de-SPACs;
  • Going concern; and
  • Cash and cash equivalents.

The target team consists of inspectors in the PCAOB's Division of Registration and Inspections who review audit firms beyond the PCAOB's traditional inspection process in order to provide insights that "inform and shape our future inspection focus areas."

According to the report, the target team's focus areas for 2022 public company audit reviews are "risks related to climate change that would affect a company's financial statements, IPOs/de-SPACs, and use of firm-designated shared service centers (including the audit firm's centers of excellence and other service delivery centers)."

The PCAOB previously released selected areas of focus for its 2022 inspections.

— To comment on this article or to suggest an idea for another article, contact Bryan Strickland at Bryan.Strickland@aicpa-cima.com.

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