Audit & assurance

The PCAOB voted to propose revised changes to a standard that would modify the auditor’s reporting model to give investors more information.

The PCAOB is considering changes in its inspections program as a result of improvements in audit quality and firms’ systems of quality control, PCAOB board member Jeanette Franzel said Thursday.

The PCAOB cautioned that improper alteration of audit documentation can result in severe penalties.

PCAOB inspectors found fewer independence impairments for auditors of broker-dealers in 2015 compared with previous years.

The PCAOB’s standards for a lead auditor’s supervision of other auditors would be strengthened under a proposal the board voted to issue.

The analysis will evaluate whether the PCAOB’s standard for engagement quality reviews helps firms identify significant deficiencies before they issue an audit report.

The AICPA Auditing Standards Board addresses the implications for the auditor’s report when an audit is conducted in accordance with both GAAS and ISAs.

PCAOB inspectors found that 93% of audits inspected in 2014 showed no failure to comply with the board’s standard on communications with the audit committee.