PCAOB shares inspection priorities for 2024

A report released Wednesday revealed the PCAOB’s 2024 inspection priorities.

Business risks that will drive inspection priorities in 2024 include high interest rates and other inflation-related challenges; supply chain issues; and business models that are significantly affected by rapidly changing technology. As a result, the PCAOB said it would continue to pay particular attention to the financial and information technology sectors.

The report states that areas of emphasis for PCAOB reviews will again include:

• Audits of companies engaging in merger-and-acquisition activities or business combinations;

• Audits of broker-dealers that file compliance reports and others that provide customers with various investment opportunities, such as introducing brokers; and

• Nontraditional audit areas.

The report called for auditors to be especially aware of their understanding of the company and its environment and to carefully consider the use of other auditors, going concern, critical audit matters (CAMs), digital assets, cybersecurity, and the use of data and technology.

“Everyday people, as well many different types of investors across the globe, depend on high-quality audits and highly trained auditors to verify the financial reporting they use to make decisions about where to invest their money,” Christine Gunia, CPA, the PCAOB’s acting director of the Division of Registration and Inspections, said at the AICPA & CIMA Conference on Current SEC and PCAOB Developments earlier this month. “In 2024, as always, we are counting on all of you to protect those investors and deliver results worthy of their trust.”

Editor’s note: Attendees at the Conference on Current SEC and PCAOB Developments have access to event sessions, including one featuring Chair Erica Williams and other board members and a session featuring Gunia.

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