PCAOB inspections in 2021 will focus on the effects of the coronavirus pandemic on companies’ financial reporting while also becoming less predictable, according to new resources published April 6.
Inspectors will select audits for review in industries that are experiencing significant disruptions or high risks during the pandemic, such as transportation, entertainment, hospitality and manufacturing. The inspectors will evaluate how auditors completed and documented procedures in compliance with auditing standards.
The PCAOB also plans to become more unpredictable in its selection of engagements to review and the focus areas selected in those reviews. Inspections in 2021 will emphasize these areas.