As inspectors begin fanning out to inspect 2014 public company audit files, they will be tuning in to emerging market risks around mergers and acquisitions, falling oil prices, undistributed foreign earnings, and the quality of audit work as firms grow other business lines.
The Public Company Accounting Oversight Board published a new paper reaching out to audit committees, Audit Committee Dialogue, to help explain how its inspections of public company auditors can be helpful to audit committees in their duty to oversee external auditors. The paper aims to highlight key areas of recurring concern in inspections as well as the emerging risks the board has identified that may affect audits, like M&A trends, oil prices, foreign earnings, and audit firms’ focus on consulting services.
