Tag Archives: Public Company Accounting Oversight Board

Sweeping PCAOB Proposal Seeking to Alter Auditors’ Role in Detecting Noncompliance Is Likely to Entangle Auditors in Complicated Regulatory and Legal Questions

On June 6, 2023, the Public Company Accounting Oversight Board (“PCAOB”) proposed new auditing standards that would substantially broaden auditors’ responsibilities for considering an audit client’s noncompliance with laws and regulations, including fraud. If adopted, the proposal is likely to entangle auditors in complicated questions of legal and regulatory compliance.

PCAOB Release No. 2023-003 (the “Proposal”) heightens auditors’ responsibilities for detecting legal and regulatory noncompliance and alerting appropriate members of management and audit committees.… More