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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Kyle Brasseur2023-03-21T16:49:00
The Securities and Exchange Commission (SEC) is paying added scrutiny toward audit firms’ increasing use of network affiliates in their work and the potential for inconsistent quality that comes with such an approach.
SEC Chief Accountant Paul Munter in a statement Friday emphasized the importance of the lead auditor’s role in ensuring quality and independence while citing a handful of enforcement actions brought by the Public Company Accounting Oversight Board (PCAOB) in 2022 against audit firms relying on the work of unregistered affiliates without proper documentation.
“An unregistered accounting firm causes a violation of PCAOB [rules] whenever it plays a substantial role in the audit of an issuer—irrespective of the audit engagement structure used by the lead auditor,” Munter said. “Any lead auditor should be aware of this requirement and safeguard against such violations in its use of other auditors during an audit engagement.”
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News and analysis for the well-informed compliance or audit exec.
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2023-10-18T17:00:00Z By Adrianne Appel
Audit firms should carefully weigh the pros and cons of indemnity clauses in light of the Securities and Exchange Commission’s recent complaint against Prager Metis, according to a legal expert.
2023-10-03T14:21:00Z By Maria L. Murphy
The Public Company Accounting Oversight Board and Securities and Exchange Commission have emphasized in public statements auditor independence is a critical enforcement area, prompting the need for firms to reacquaint themselves with each agency’s requirements.
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Concerned auditors are missing the big picture when assessing a company’s internal control over financial reporting, the chief accountant at the Securities and Exchange Commission called on the profession—and company managers—to take a holistic approach to assessing risks.
2024-06-12T01:46:00Z By Kyle Brasseur
Erica Williams was reappointed to a second term as chair of the Public Company Accounting Oversight Board after an ambitious first three years in the role that have seen the agency work to update many of its standards deemed outdated.
2024-06-03T17:35:00Z By Kyle Brasseur
Software company Autodesk said it won’t restate several years of financial statements following an audit committee investigation into potential accounting misconduct.
2024-05-24T16:27:00Z By Jeff Dale
Los Angeles-based bank holding company Broadway Financial Corp. disclosed in a public filing weaknesses discovered in its internal control over financial reporting because of training shortfalls.
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