PCAOB Releases Review of 2021 Inspections
The Public Company Accounting Oversight Board (PCAOB) recently released “Observations From the Target Team's 2021 Inspections,” sharing findings gathered from its 2021 inspections as well as focus areas for 2022 inspections.
The report covers auditors' responsibilities and includes observations and good practices for the team's four focus areas of fraud, interim reviews of special-purpose acquisition companies (SPACs) and de-SPACs, going concern, and cash and cash equivalents.
The PCAOB’s target team is comprised of inspectors in the Division of Registration and Inspections who review audit firms beyond the PCAOB's usual inspection process to assist the PCAOB in determining its future inspection focus areas.
Per to the report, the target team's focus areas for 2022 public company audit reviews are risks related to climate change that would affect a company's financial statements, IPOs/de-SPACs and use of firm-designated shared service centers (including the audit firm's centers of excellence and other service delivery centers). Prior to the new report, the PCAOB released 10 selected areas of focus for 2022 inspections.