Operational changes, remote procedures and new risks associated with the coronavirus pandemic have made the audit environment much different than it was before.
Adapting to the pandemic, certain firms modified their internal monitoring programs to target specific engagements in industries more affected by COVID-19. Firms also emphasized the importance of consultation and, in some cases, established supplemental consultation requirements for related issues.
However, the most common deficiencies identified in PCAOB inspections include areas that were already challenging before the pandemic, like auditing revenue, auditing accounting estimates and internal control over financial reporting.
The PCAOB has recently noted some good practices developed by firms to improve audit quality, and one official offered these takeaways.