The PCAOB recently released its 2019 Staff Inspections Outlook for Audit Committees. During its 2019 inspections, the PCAOB has said that its inspections will focus on among other things:
- Technological developments affecting audits, including the use of software audit tools, and responses to risks associated with cybersecurity breaches;
- Audit firm responses to past inspection findings; and
- Audit procedures on new accounting standards, including internal control effects related to revenue recognition and lease accounting.
The Staff outlook also offers sample questions that audit committees may consider asking their auditors relating to key areas, such as auditor response to identified risks, changes in the auditor’s report, including relating to CAMs dry runs, observations relating to the company’s implementation of new accounting standards, and auditor independence.