Small Business Shared Interest Group

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  • 1.  Information request: SEC approved new PCAOB Audit Standards

    Posted 09-19-2024 08:23 AM

    Please submit your feedback here.

    SEC approved new PCAOB Audit Standards

    Interested in:

    1) Nature of major changes? 

    2) Specifically discuss changes related to "greater liability placed on employee and auditors".

    3) Timing, applicability, to whom, by whom, enforcement details, implementation, feedback from broader management community, practitioners, public accounting firms?

    4) Broader implications? Good / bad?

                 4.1) Lets think critically, is it greater or less oversight? Risk, more or less, if it shifts then to whom?  Burden of compliance, more or less, better and worse for whom? 

    Any other thoughts? 

    Lets educate each other. Please post your knowledge, even if its a copy/paste.

    Tnx.



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    Ilya Ilienko, dual MBA, CPA, CMA
    Board Member / Director
    East Coast - United States
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  • 2.  RE: Information request: SEC approved new PCAOB Audit Standards

    Posted 09-26-2024 08:39 PM

    I was really hoping a CPA or someone focused on auditing could provide some insight into this.  I guess there is still time, but I'm also curious from a Board perspective.  To be specific, are Audit Committee board members also held to this standard?

    Hoping an expert can weigh in!



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    Mary Baird CMA
    Chief Executive Officer
    Dublin OH
    United States
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  • 3.  RE: Information request: SEC approved new PCAOB Audit Standards

    Posted 09-27-2024 04:59 PM

    If it's under the SEC/PCAOB jurisdiction, then yes, all of them will have to abide by the standards (Audit committee), I am just curious as to what changes they made and in which direction . . .

    Lets wait for someone smart to come along and explain -- chirp . . . chirp . . . cricket



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    Ilya Ilienko, dual MBA, CPA, CMA
    Board Member / Director
    East Coast - United States
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  • 4.  RE: Information request: SEC approved new PCAOB Audit Standards

    Posted 09-30-2024 09:42 AM

    Sorry I cant be of much help with this one.  I've always worked in the very low end of the middle market, or small.

    Still interested in finding out more though!



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    Jason Sellnow CMA, CSCA
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  • 5.  RE: Information request: SEC approved new PCAOB Audit Standards

    Posted 20 days ago

    I also only deal with non-SEC registered clients, so I don't have a ton of insight into the specifics of the PCAOB's changes, however, much of what the PCAOB implements eventually trickles down to audits of non-registered companies as well. 

    The main change they put through relates to professional liability.  They are attempting to clarify an auditor's responsibilities to align it with the expectations of investors.  They've changed the threshold at which liability can be placed on an individual CPA related to a violation by his/her firm to now hold them accountable for "negligence" (the previous standard was "recklessness").  Those who oppose the changes say that it could once again have the unintended consequence of further reducing the number of individuals interested in entering the audit workforce, an issue that already is causing a lot of stress on the profession.  

    The other change was they clarified the need to verify audit evidence is relevant and reliable when relying on IT-assisted auditing techniques, which sounds like just a simple update to address the ever-increasing use of technology.



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    Amanda Bernard CMA,CPA,CFE
    Director/Manager
    Douglassville PA
    United States
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  • 6.  RE: Information request: SEC approved new PCAOB Audit Standards

    Posted 19 days ago

    I have only worked on the client side of audits, mainly non-profits going through a single audit because they received more than $500,000 in federal funds. I can only see audits getting more expensive to compensate for the lack of auditors as well as the higher risk they are taking on with these changes.



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    David Belnap, CMA, CSCA, CPA
    Belnap Accounting
    Hollywood FL
    United States
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