Auditor independence remains a cornerstone of quality control in audit firms, and recent findings from the Public Company Accounting Oversight Board (PCAOB) underscore its growing importance.
In a newly released report, the PCAOB highlighted a concerning trend: a steady rise in independence-related deficiencies observed during inspections between 2021 and 2023.
In response to these findings, the PCAOB has issued a set of best practices aimed at helping auditors and audit committees mitigate independence risks and maintain high standards of professional conduct. Key recommendations include:
- increasing the use of technology-based tools
- enhancing the frequency of personal independence representations
- enhanced processes
- establishing disciplinary actions
- use of templates
For more detailed insights, you can read the full PCAOB staff report.