PCAOB prioritizes two standard-setting projects

The PCAOB has moved two standard-setting projects to the front burner.

A project on firm and engagement performance metrics and one on substantive analytical procedures have been moved to the board’s short-term list, meaning that a related proposal and possible adoption is prioritized for the next 12 months. Both projects were forecast to be longer-term in nature prior to Tuesday’s announcement.

“The PCAOB is pursuing one of the most ambitious standard-setting agendas in its history, and the updates reflect the solid progress that we are making to carry out that agenda,” PCAOB Chair Erica Williams said in a news release. 

The PCAOB also added two projects — use of a service organization and interim financial information reviews — to its midterm agenda. Midterm projects are active but aren’t expected to result in action in the next 12 months.

The board also announced it is considering how its rules can be enhanced for the sake of investor transparency and enforcement in the following areas:

• Firm reporting and transparency;

• Contributory liability;

• Follow-on disciplinary proceedings; and

• Registration.

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