Sometimes I get the impression that the Big 4 don’t fully appreciate what the PCAOB’s supposed to do as a regulator.
Last week the PCAOB approved its 2016 budget and also its "strategic plan" through 2019. That might sound like a more potent sleeping aid than tryptophan, but sometimes board members say interesting things worth sharing and, today, we have one for you.
SEC Chief Accountant James Schnurr says that, although "there's room for improvement" audit quality "is getting better" and the PCAOB has "deepened their expertise" and "their inspection process has matured."
As you've probably heard by now, materiality's definition is up for debate. Back in September, the FASB said they'd like to go with the Supreme Court's definition and investor advocates think that's a terrible idea.
Audit firms still seem to be getting used to having a regulator that watches their every move. Or failure to move in the case of BDO Auditores, SLP (aka "BDO Spain").
Doesn't make much sense, does it?
But they did!
The PCAOB, bless their hearts, released a forgettable inspection report from PwC today.
Like that miserable couple you know that have been together far too long, here's a, seemingly, dramatic auditor/client interlude, starting with an auditor walking out after years of neglect:
A Deloitte survey of investors, financial statement users and audit committee members found that an overwhelming majority of these people, "believe auditors should use advanced technologies more extensively in performing an audit."