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Last week, the PCAOB released its updated Spotlight: Audit Committee Resource. The PCAOB describes this publication as follows:

The staff of the Public Company Accounting Oversight Board (PCAOB) from time to time provides Spotlights to highlight timely information for auditors, audit committee members, investors, and others. Our oversight activities continue to indicate that investors and other stakeholders look to audit committees of public companies to oversee the quality and sufficiency of the accounting and financial reporting processes of public companies, as well as the audits of public companies. As part of audit committees’ audit oversight responsibilities, it is important that audit committees engage in effective two-way communication with auditors and ask relevant questions throughout the audit.

This “Spotlight: Audit Committee Resource” suggests questions that may be of interest to audit committee members to consider amongst themselves or in discussions with their independent auditors, particularly given today’s economic and geopolitical landscape. Stakeholders may also consider other Spotlights as reference points for relevant discussions, including our April 2023 Spotlight, “Staff Priorities for 2023 Inspections.”

The Spotlight addresses a number key areas that are of interest audit committees, including the risk of fraud, risk assessment and internal controls, auditing and accounting risks, digital assets, M&A activities, use of the work of other auditors, talent and Its impact on audit quality, independence, critical audit matters and cybersecurity.

– Dave Lynn