PCAOB offers forum for auditors; SEC releases several updates

Days after issuing a proposal to strengthen individual accountability for firm violations in audits, the PCAOB has announced a livestreamed forum aimed at educating auditors on how to avoid deficiencies.

The 2023 Forum on Auditing in the Small Business Environment and on Auditing Broker-Dealers is set for Oct. 26. It’s free and provides CPE; advance registration is required.

“Given the increases in deficiencies that the PCAOB has observed in audits of public companies and broker-dealers, audit firms must make changes so they can live up to their responsibility to investors,” PCAOB Chair Erica Y. Williams said in a news release. “The PCAOB’s annual forum enables us to connect directly with auditors of small businesses and broker-dealers about their critical role in protecting investors.”

The PCAOB recently proposed changes to PCAOB Rule 3502, Responsibility Not to Knowingly or Recklessly Contribute to Violations, that would lower the threshold for individual auditors to face liability for firm violations on their watch. Public comments on the proposal are being accepted through Nov. 3.

The SEC, which oversees the PCAOB, recently shared several initiatives intended to protect investors and protect privacy. The SEC:

• adopted amendments to guard investors against misleading investment fund names;
• approved a rule revising its Privacy Act regulations;
• proposed improvements to the Electronic Data Gathering, Analysis, and Retrieval system, affectionately known as EDGAR; and
• issued a new strategic plan for its Diversity, Equity, Inclusion, and Accessibility efforts.

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