PCAOB Amends Standards for Lead Auditor’s Use of Other Auditors

June 21, 2022

The Public Company Accounting Oversight Board (PCAOB) recently adopted amendments to its auditing standards to strengthen requirements that apply to audits involving multiple audit firms. The amendments, which benefited from three comment solicitations, aim to improve the quality of audits where other accounting firms or individual accountants perform important work on the audit.

The PCAOB said the amendments will require audit firms to ensure that lead auditors sufficiently plan, supervise and evaluate the work of other auditors. They specify certain procedures for the lead auditor to perform when planning and supervising an audit that involves other auditors and apply a risk-based supervisory approach to the lead auditor’s oversight of other auditors for whose work the lead auditor assumes responsibility.

The amendments apply to all audits conducted under PCAOB standards. Subject to approval by the Securities and Exchange Commission (SEC), the amendments will take effect for audits of financial statements for fiscal years ending on or after Dec. 15, 2024.

For more information on the history of this project, including historical documents and comments received, see the PCAOB’s Rulemaking Docket 042 and Standard-Setting Project page.