PCAOB offers reporting guidance on a number of fronts

The PCAOB recently withdrew a rule aimed at adding a swath of reporting requirements on Form AP, but it still has concerns about deficiencies related to the form’s existing requirements.

A new staff publication, “Audit Focus: Form AP,” aims to assist auditors in avoiding what the PCAOB staff called “a large number of deficiencies” on the form, according to a news release.

The publication features:

• Key reminders for auditors from the PCAOB rules, standards, and staff guidance related to Form AP;
• Staff’s perspectives on common deficiencies; and
• Good practices that the staff has observed, such as the use of structured templates, guidance on how to complete the templates, or policies mandating review of Form AP information to ensure accuracy and completeness.

In November 2024, the PCAOB approved new requirements that, in part, would have added eight firm and engagement metrics to the auditor’s responsibility on Form AP. But last month, the PCAOB withdrew its request for SEC approval.

Audit Focus is a series of PCAOB publications that aims to provide easy-to-digest information to auditors, especially those who audit smaller public companies.

PCAOB posts knowledge checks for two new standards

The PCAOB also recently issued several knowledge checks, described in a news release as informal, anonymous quizzes designed “to assist and inform auditors in their implementation of PCAOB standards and rules.”

A series of knowledge checks address important aspects of QC 1000, A Firm’s System of Quality Control, a new standard and set of amendments with an effective date of Dec. 15. Topics covered include risk assessment, roles and responsibilities under QC 1000, and considerations related to ethics and independence.

Another recently published knowledge check covers key aspects of AS 2310, The Auditor’s Use of Confirmation. The new standard is set to replace AS 2310, The Confirmation Process, and is effective for audits of financial statements for fiscal years ending on or after June 15, 2025.

Upcoming: Board member forums for small businesses

PCAOB Chair Erica Y. Williams will host an in-person forum on April 3 in Chicago, focused on auditing in the small business environment and on auditing broker-dealers.

The free event will also be available online. Registration is required.

“Smaller audit firms play an essential role in America’s economy, markets, and system of investor protection,” Williams said in a news release. “We are pleased to continue this forum series, which has proven to be an excellent way for our board members and staff to engage with smaller firms directly about audit quality and their unique needs and challenges.”

On Tuesday, PCAOB member Christina Ho will host an in-person forum in Miami.

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