PCAOB Releases Focus Areas for 2022 Inspections
The PCAOB recently released its Staff Overview for Planned 2022 Inspections, emphasizing 10 areas of focus.
The 10 focus areas for 2022 inspections are:
- Fraud and other risks
- Initial public offerings (IPOs) and mergers and acquisitions (M&A) activity
- Audit firms' execution challenges
- Broker-dealer-specific considerations
- Use of service providers in the confirmation process
- Critical audit matters
- Audit areas with continued deficiencies
- Firms' quality control systems
The PCAOB stated the focus areas were determined based on audit risks due to recent economic developments, including an increase in IPOs and M&A activities (including transactions with special-purpose acquisition companies); supply chain disruptions; COVID-19 effects; heightened volatility in financial markets; and audit firmwide risks, including staff turnover and risks related to remote audits.
The report also provided reminders regarding professional skepticism, remote-working environments, independence and other issues. In addition, the PCAOB reminded auditors about potential issues related to Russia's invasion of Ukraine, suggesting auditors refer to its report, Auditing Considerations Related to the Invasion of Ukraine, for guidance.