According to the Public Company Accounting Oversight Board, the new quality control auditing standard—QC 1000, A Firm’s System of Quality Control—will go into effect in 266 days. So, to prepare auditors for what’s to come, the PCAOB on March 24 released a series of three staff presentation videos focused on implementing the monitoring and remediation process under the new standard.
The videos are the latest in a series of resources the audit regulator has recently released to assist and inform auditors in their implementation of quality control and other PCAOB standards and rules.
- Related article: PCAOB Replaces Old Quality Control Rules With a New Standard
- Related article: PCAOB Provides Three Resources For Auditors On the New Quality Control Rules
- Related article: PCAOB Posts Staff Video on Audit Firm Risk Assessment Processes Under New QC Standard
- Related article: PCAOB Checks Auditors’ Knowledge on New Quality Control Standard
Led by staff in the PCAOB’s Office of the Chief Auditor, the three videos cover topics including the following:
- The objective of the monitoring and remediation process;
- General requirements for monitoring and remediation; and
- Requirements related to designing and performing monitoring activities for engagements and the quality control system itself.
- How to determine if engagement deficiencies exist;
- How to respond to engagement deficiencies, including the auditor’s responsibility to respond to engagement deficiencies on completed engagements under an amended and retitled AS 2901, Responding to Engagement Deficiencies After Issuance of the Auditor’s Report; and
- How to determine if quality control observations and quality control deficiencies exist.
- Performing root-cause analysis on quality control deficiencies; and
- Designing, implementing, and testing remedial actions.
For more PCAOB implementation resources on QC 1000 and other PCAOB standards and rules, visit the Implementation Resources for PCAOB Standards and Rules page. Auditors with questions on implementing the new standard can contact PCAOB staff via the PCAOB website or by phone at (202) 591-4395.
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Tags: Accounting, Auditing, auditing standards, auditors, PCAOB, quality control
