SEC Approves a New PCAOB Quality Control Standard
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9 September 2024 The Securities and Exchange Commission approved the Public Company Accounting Oversight Board’s (PCAOB) new quality control (QC) standard and related amendments to its standards, rules, and forms. QC 1000, A Firm’s System of Quality Control, establishes an integrated, risk-based quality control standard that will require all registered public accounting firms to identify specific risks to their practice and design a quality control system that includes appropriate responses to guard against those risks. Registered firms that perform engagements under PCAOB standards will be required to implement and operate the QC system. The new quality control standard focuses on an audit firm’s accountability and continuous improvement of its audit practice and will require an annual evaluation of the firm’s QC system and related reporting to the PCAOB, certified by key firm personnel. In addition, firms that annually issue audit reports for more than 100 issuers will be required to establish an external quality control function (EQCF) composed of one or more persons who can exercise independent judgment related to the firm’s QC system. “An auditing firm is ultimately a professional services firm, and it needs to ensure the quality of the services it provides,” said SEC Chair Gary Gensler. “I am pleased to approve this standard because it will improve the quality control systems of auditors, and thus better protect investors.” To find out more details please visit : https://www.sec.gov/ |