The PCAOB has released its latest staff publication, "Audit Focus: Engagement Acceptance," which emphasizes crucial reminders for auditors working with smaller public companies.
The publication outlines best practices for evaluating client information, including changes in ownership and management as well as assessing the predecessor auditor's disagreements with management regarding accounting principles.
The PCAOB staff highlighted three good practices, including assessing partner capacity, stating: "In both the acceptance and continuance process, audit firms have implemented a 'scorecard' where points are assigned to a partner based on the number and type of audits already served.