PCAOB 1 References in Auditors' Reports to the Standards of the Public Company Accounting Oversight Board

2016 ◽  
pp. 813-816
Keyword(s):  
The Public ◽  
Public Company

Does Recent Academic Research Support Changes to Audit Reporting Standards?

2016 ◽  
Vol 30 (2) ◽  
pp. 255-275 ◽  
Author(s):  
Jean Bédard ◽  
Paul Coram ◽  
Reza Espahbodi ◽  
Theodore J. Mock
Keyword(s):  
Financial Reporting ◽  
Academic Research ◽  
Financial Statements ◽  
Future Research ◽  
Research Support ◽  
The Public ◽  
Market Participants ◽  
Information Gap ◽  
Public Company ◽  
Reporting Process

SYNOPSIS The Public Company Accounting Oversight Board (PCAOB), the International Auditing and Assurance Standards Board (IAASB), and the U.K. Financial Reporting Council (FRC) have proposed or approved standards that significantly change the independent auditor's report. These initiatives require the auditor to make additional disclosures intended to close the information gap; that is, the gap between the information users desire and the information available through the audited financial statements, other corporate disclosures, and the auditor's report. They are also intended to improve the relevancy of the auditor's report. We augment prior academic research by providing standard setters with an updated synthesis of relevant research. More importantly, we provide an assessment of whether the changes are likely to close the information gap, which is important to financial market participants and other stakeholders in the audit reporting process. Also, we identify areas where there seems to be a lack of sufficient research. These results are of interest to all stakeholders in the audit reporting process, as the changes to the auditor's report are fundamental. Additionally, our summaries of research on the auditor's report highlight where there is limited research or inconsistent results, which will help academics identify important opportunities for future research.

The Development of Auditing Standards at the PCAOB and Related Audit Practitioner Input

2020 ◽  
Author(s):  
L. Tyler Williams ◽  
W. Mark Wilder
Keyword(s):  
Standard Setting ◽  
The Public ◽  
Setting Process ◽  
Public Company ◽  
Auditing Standards ◽  
Audit Standard ◽  
Comment Letters ◽  
Feedback Responses

The Public Company Accounting Oversight Board (PCAOB; Board) maintains that constituent feedback plays an essential and dynamic role in its audit standard-setting process. We examine a major source of constituent feedback, responses to standard-setting questions, using a sample drawn from the original proposals of fourteen PCAOB auditing standards. We find that after receiving comment letter feedback to the standard-setting questions, the Board revises approximately half of its guidance tied to those questions before it finalizes auditing standards-a finding consistent with the Board's assertion that it carefully considers constituent perspectives as it develops new regulation. We also explore the related comment letters of eight professional auditing firms subject to the PCAOB's annual inspection program and discover varying levels of opposition to and support for the PCAOB's proposed authoritative guidance. We observe PCAOB revision to authoritative guidance highly contested by the firms in more than three-fourths of cases of standard-setting questions and PCAOB non-revision to guidance highly supported by the firms in more than ninety percent of cases.

scholarly journals Measuring the Range Application of Internal Marketing for HRM Philosophy in the Public Company for Electrical and Electronic Industries

2019 ◽  
Vol 25 (116) ◽  
pp. 111-126
Author(s):  
Haider Fadhel Kadhem ◽  
Alaulddin B Jawad
Keyword(s):  
Research Paper ◽  
Internal Marketing ◽  
Internal Communication ◽  
Company Performance ◽  
Check List ◽  
Main Hypothesis ◽  
The Public ◽  
Public Company ◽  
List Method ◽  
Organization Framework

The reason behind choosing this topic " internal marketing (IM) of human resource management (HRM)" is to highlight the advantages of using IM in the organization framework. The problem of the research paper lies in not paying enough attention to employees genuine needs as they interact with each other in the sake of organization prosper. This research paper can be used as indictor to expose the weaknesses that the organization encounters daily. The current research paper attempts at examining the possibility of developing philosophy of internal marketing of human resources and its most practices, empowering staff, training courses, motivations and recognitions, and within departments communication, in order to reach targeted results such as performance, knowledge, and quality. That can be done through getting rid of processes that do not create value for the final product presented in the General Company for Electrical and Electronic Industries in Iraq. The main hypothesis of the research is to investigate whether the General Company for Electrical and Electronic Industries in Iraq applies IM as one of the significant approach to boost and alter employees' performance and attitudes in order to increase organizational commitment. The research in order to reach its target relied on the “check list” method, which is one of the case study methods that rely on personal observation and interviews mainly in its preparation. The “check list” involved different levels of management, directors, executives, and employees who work at General Company for Electrical and Electronic Industries in Iraq. The study reached a number of conclusions.  The most important one is dissemination of culture and principles of IM of HRM within all units of the company. The benefits of this system lead to improve the overall company performance. Organizations should be more flexible in administrative decisions by opening diverse communication channels at all levels of management, viewing employees’ suggestions and listening to their complaints, and involving them in the decision-making process as a part of principles of internal communication.

scholarly journals Is The Pcaob a “Heavily Controlled Component” Of The Sec?: An Essential Question In The Constitutional Controversy

2009 ◽  
Vol 71 (3) ◽  
Author(s):  
Donna M. Nagy
Keyword(s):  
Supreme Court ◽  
Separation Of Powers ◽  
Free Enterprise ◽  
Public Companies ◽  
The Public ◽  
Sarbanes Oxley ◽  
Public Company ◽  
Essential Question ◽  
The U.S

The U.S. Supreme Court recently heard oral arguments in Free Enterprise Fund v. Public Company Accounting Oversight Board, described as “the most important separation-of-powers case regarding the President’s appointment and removal powers to reach the courts in the last 20 years.” Established by Congress as the cornerstone of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley” or the “Act”), the Public Company Accounting Oversight Board (the “PCAOB” or the “Board”) was structured as “a strong, independent board to oversee the conduct of the auditors of public companies.” Its principal mission was to prevent the type of auditing failures that contributed to the scandals at Enron, WorldCom, and numerous other public companies in the period leading up to the passage of the Act.

Opportunistic Avoidance of Litigation Loss Accruals and the Mitigating Effects of Auditors

2021 ◽  
pp. 0148558X2110685
Author(s):  
Hsin-Yi Huang ◽  
Eric Lohwasser ◽  
Zhiyuan Yu ◽  
Hsihui Chang
Keyword(s):  
Analyst Forecasts ◽  
Professional Skepticism ◽  
The Public ◽  
Subjective Estimate ◽  
Public Company ◽  
Subjective Estimates

We find that firms with preliminary earnings that are expected to just meet analyst forecasts are more likely to only disclose (i.e., not accrue) litigation loss contingencies, claiming that the litigation event falls below the qualitative thresholds necessitating accrual. We also find that this opportunistic treatment of a subjective estimate is reduced when firms’ auditors have expertise in the defendant’s industry or have experience auditing litigation contingencies. Furthermore, we find that opportunistic disclosure usage increases when firms are more economically important to auditors’ client portfolios. Our results are robust to a series of additional tests. We provide evidence to support the Public Company Accounting Oversight Board’s (PCAOB) call for increased auditor professional skepticism toward management bias and opportunism when evaluating subjective estimates.

SISTEM SIMULASI PERHITUNGAN KPR DI PERUM PERUMNAS REGIONAL V BERBASIS WEB

2021 ◽  
Vol 1 (2) ◽  
pp. 33-43
Author(s):  
Dendy Kurniawan ◽  
Dwi Setiawan
Keyword(s):  
Middle Class ◽  
Programming Languages ◽  
Home Ownership ◽  
Simulation System ◽  
Microsoft Excel ◽  
The Public ◽  
Payment Methods ◽  
Regional Area ◽  
Cash Payment ◽  
Public Company

Perum Perumnas is a State-Owned Enterprise (BUMN) in the form of a Public Company (Perum). Perum Perumnas has 7 regional business areas and 1 rusunawa regional area. Perum Perumnas Regional V which is located at Jl. Wilis No. 23 Semarang is engaged in providing housing and settlements for the middle class community. In its business activities, Perumnas sells houses to the public with cash payment methods or through Home Ownership Credit (KPR). The Perumnas Branch can serve every consumer who comes to Perumnas Branch to seek information about the amount of monthly installment payments if the consumer applies the mortgage system with the down payment that the consumer has and the shortfall that must be paid. In carrying out this activity, the Perumnas Branch still uses the Microsoft Excel application.The problem that often arises at this time is the calculation of KPR between Perumnas Semarang Branch I and Perumnas Semarang Branch II which is quite different, making it less effective for companies. Based on this description, the author tries to provide a solution that is able to overcome these problems by designing a website-based mortgage calculation simulation system at Perum Perumnas Regional V with the aim of making it easier for consumers and marketing or sales parties to find information about mortgage calculations.Making this simulation system, the author uses the HTML, CSS, PHP, JavaScript and MySQL programming languages ​​as the database. In its manufacture, this application is adapted to the needs of Perumnas in general.The conclusion that can be drawn is the dissimilarity or difference in filling out the mortgage calculation where the Semarang Branch I and Semarang Branch II when the marketing staff does the mortgage calculation even though they use the same bank Suggestions that can be put forward is to create a mortgage calculation simulation system that can make it easier for consumers to get information about mortgage calculations quickly, efficiently and accurately and can be accessed anywhere and anytime.

The Impact of the PCAOB Triennial Inspection Process on Inspection Year and Non-Inspection Year Audits

2021 ◽  
Author(s):  
Lawrence J. Abbott ◽  
William L Buslepp
Keyword(s):  
Audit Quality ◽  
The Public ◽  
Learned Behavior ◽  
Public Company ◽  
Inspection Process ◽  
One Year ◽  
The Impact

The Public Company Accounting Oversight Board (PCAOB) inspects auditors with fewer than 100 publicly held clients, once every three years (i.e., triennial inspection). In doing so, the PCAOB may inspect any audit engagement within the three-year window, including audits completed only months earlier ("inspection year" audits) and audits with at least a one-year, if not two-year lag ("non-inspection year" audits). We theorize the triennial inspection process affects audit quality levels, whereby auditors impose higher (lower) audit quality during inspection years (non-inspection years). We find clients of triennially inspected auditors have significantly lower levels of accruals during inspection years. Further, this change can be attributed to additional audit effort expended during inspection years. Finally, we find some evidence this is a learned behavior developed after the initial round of inspections. Our evidence suggests auditors opportunistically increase (decrease) audit quality during inspection (non-inspection) years in response to the triennial inspection process.

Hiring Auditors with a Part II Quality Control Report: An Opportunity for Increased Earnings Management or Lower Audit Fees?

2020 ◽  
Vol 5 (1) ◽  
pp. 73-93
Author(s):  
Jared Eutsler ◽  
D. Kip Holderness ◽  
Megan M. Jones
Keyword(s):  
Quality Control ◽  
Audit Quality ◽  
Audit Fees ◽  
Data Availability ◽  
Fiscal Year ◽  
The Public ◽  
Audit Firms ◽  
Public Company ◽  
General Demand ◽  
Systemic Quality

ABSTRACT The Public Company Accounting Oversight Board's (PCAOB) Part II inspection reports, which disclose systemic quality control issues that auditors fail to remediate, signal poor audit quality for triennially inspected audit firms. Auditors that receive a Part II inspection report typically experience a decrease in clients, which demonstrates a general demand for audit quality. However, some companies hire auditors that receive Part II inspection reports. We examine potential reasons for hiring these audit firms. We find that relative to companies that switch to auditors without Part II reports, companies that switch to auditors with Part II reports have higher discretionary accruals in the first fiscal year after the switch, which indicates lower audit quality and a heightened risk for future fraud. We find no difference in audit fees. Our results suggest that PCAOB Part II inspection reports may signal low-quality auditors to companies that desire low-quality audits. Data Availability: Data are available from the public sources cited in the text.

Sign in / Sign up

Export Citation Format

Share Document