On August 1, 2012, the Public Company Accounting Oversight Board (PCAOB) issued Release No. 2012-003, Information for Audit Committees about the PCAOB Inspection Process. This release was issued to assist audit committees in understanding the PCAOB’s inspection process of audit firms and gathering useful information about those inspections. The release also includes certain questions an audit committee may want to ask their audit firm about the PCAOB inspection. These questions include the following:
- Was the company’s audit selected for PCAOB inspection?
- Did the PCAOB identify deficiencies in other audits that involved auditing or accounting issues similar to issues presented in the company’s audit?
- What were the audit firm’s responses to the PCAOB findings?
- What is the audit firm changing to address any quality control issues?
- What is the progress of the quality control remediation process?
- What are the inspected years about which the PCAOB has made a final determination about the audit firm’s remediation efforts and what is the nature of that determination?
- Has the PCAOB provided initial indications that the audit firm may not have sufficiently remediated any items?
The release can be obtained from the following link: