Careers
SubscribeStandard-Setting and Research Projects
As part of establishing and maintaining PCAOB standards, the PCAOB considers current and emerging audit issues and determines the need for engaging in standard-setting or conducting research on standards related issues. The projects are informed by
a range of activities, such as the PCAOB's oversight; engagement with investors and other stakeholders, including through the PCAOB’s advisory groups; discussion with U.S. Securities and Exchange Commission staff; activities of other regulators
and standard setters; and other relevant inputs and developments.
The standard-setting agenda is primarily focused on enhancing investor protection by prioritizing the areas where improvements to PCAOB standards could have the most significant impact on audit quality and the public interest.
The standard-setting projects are divided into short-term and mid-term categories and are presented in no particular order within such categories. Short-term standard-setting projects are those that are being actively developed by the staff and where a Board action (e.g., proposal or adoption) is anticipated in fewer than 12 months. Mid-term standard-setting projects are projects where the staff is actively engaged but Board action is not anticipated in the next 12 months. As mid-term projects progress, they will be moved onto the short-term projects list.
This standard-setting agenda is intended to be dynamic. Consequently, there may be updates to the substance or anticipated timing of the projects as we gain more insight based on our oversight activities or as circumstances change. The Office of the Chief Auditor will update the agenda as needed but at a minimum semi-annually to reflect changes driven by the types of factors discussed above, as well as any updates to the agenda based on completion of projects and additions of other projects.
Short-Term Standard-Setting Projects
| Project | Project Description | Next Board Action | Anticipated Timing |
|---|---|---|---|
| Quality Control | Consider how PCAOB quality control (QC) standards should be revised to enhance and strengthen requirements related to a firm’s QC system. | TBD pending analysis of comment letters on November 18th proposal. | |
| Confirmation | Consider how AS 2310, The Confirmation Process, should be revised to reflect changes in technology, as well as to align more closely with the PCAOB’s risk assessment standards. | TBD pending analysis of comment letters on December 20th proposal. | |
| Noncompliance with Laws and Regulations | Consider changes to an auditor’s consideration of possible noncompliance with laws and regulations including how AS 2405, Illegal Acts by Clients, should be revised to integrate a scalable, risk-based approach that takes into account recent developments in corporate governance and internal control practices. | Proposal | 2023 |
| Attestation Standards Update | Consider the requirements in the interim attestation standards in connection with the PCAOB’s interim standards project. | Proposal | 2023 |
| Going Concern | Consider the auditor’s evaluation and reporting of a company’s ability to continue as a going concern in response to changes in financial reporting, the auditing environment, and stakeholder needs, including by considering how AS 2415, Consideration of an Entity's Ability to Continue as a Going Concern, should be revised. | Proposal | 2023 |
| Interim Standards – AS 1000 | Consider changes to auditing standards in the AS 1000 series and in AS 2815, The Meaning of "Present Fairly in Conformity with Generally Accepted Accounting Principles." | Proposal | 2023 |
| Amendments Related to Certain Aspects of Designing and Performing Audit Procedures that Involve Technology-Assisted Data Analysis | Consider how PCAOB standards should be revised to address certain aspects of designing and performing audit procedures using technology-assisted data analysis. | Proposal | 2023 |
Mid-Term Standard-Setting Projects
| Project | Project Description |
|---|---|
| Substantive Analytical Procedures | Consider changes to an auditor’s use of substantive analytical procedures to better align with the auditor’s risk assessment and to address the increasing use of technology tools in performing these procedures, including whether to revise AS 2305, Substantive Analytical Procedures. |
| Fraud | Consider how AS 2401, Consideration of Fraud in a Financial Statement Audit, should be revised to better align an auditor’s responsibilities for addressing intentional acts that result in material misstatements in financial statements with the auditor’s risk assessment, including addressing matters that may arise from developments in the use of technology. |
| Interim Ethics and Independence Standards | In connection with the PCAOB’s interim standards project, consider whether PCAOB registered firms and their associated persons existing obligations should be enhanced and updated to better promote compliance through improved ethical behavior and independence. |
| Interim Standards | Consider whether the remaining “interim” standards, as adopted upon the establishment of the Board, should be amended, replaced, or eliminated, as appropriate. As part of this analysis, evaluate which standards are necessary to retain, and of those, which should be retained with minimal updates and which require more significant changes. Separate projects, including requests for comment on potential standards to eliminate, will be added to the standard-setting agenda as the staff completes its analysis. |
Recently Completed Standard-Setting Projects
| Project | Project Description | Date of Board Adoption | Date of SEC Approval |
|---|---|---|---|
| Other Auditors | Strengthen and modernize the existing requirements and impose a more uniform approach to the lead auditor's responsibilities, including the supervision of other auditors. | June 21, 2022 | August 12, 2022 |
Research Projects
Research projects focus on whether there is a need for changes to PCAOB standards or other regulatory responses. If standard setting is deemed appropriate, the project will be added to the standard-setting agenda.
If standard setting is not pursued, consideration will be given to whether any other action is needed. For example, the staff may prepare guidance regarding the application of existing PCAOB standards.
If research on a project continues for more than 12 months, a project update will be provided. To help expedite the research phase, the staff welcomes stakeholders to share with the PCAOB analyses and data related to these research topics. Please
provide this information to the following email address: [email protected].
| Project | Project Description |
|---|---|
| Data and Technology | Assess whether there is a need for guidance, changes to PCAOB standards, or other regulatory actions in light of the increased use of technology-based tools by auditors and preparers. This includes evaluating the role technology innovation plays in driving audit quality. Research from this project may give rise to individual standard-setting projects and may also inform the scope or nature of other projects that are included on the standard-setting agenda. |
| Firm and Engagement Performance Metrics | Assess whether there is a need for guidance, changes to PCAOB standards, or other regulatory actions in light of the increased disclosure and demand for firm and engagement metrics. This includes evaluating metrics already disclosed by Firms to audit committees and the public. Our research includes taking into account data from our oversight activities, firm current practices, and global initiatives in other jurisdictions by regulators, oversight bodies, professional bodies, and others. |