The COVID-19 pandemic has had a dramatic impact on the business environment, leading to significant changes in the risks and results auditors consider and test during their engagements.
The pandemic altered revenue and expenses for many companies, supply chain and labor challenges pose new risks and business strategies quickly adapted to the new environment.
As a result, the PCAOB will focus its inspections of audit firms in 2022 on many areas influenced by the pandemic.
Those areas include initial public offerings, merger and acquisition activities, and widespread disruption in supply chains. The PCAOB has already found that confirmations are causing problems for audit firms.
Consider these tips for auditing in the challenging year ahead.