In short
The Public Company Accounting Oversight Board (PCAOB) inspects registered firms each year if they audit more than 100 public companies, and at least every 3 years otherwise.
Key takeaways
- Inspections review selected audits and the firm's quality control.
- Inspection reports are public, but criticisms of quality control stay private if remediated within 12 months.
- Deficiencies can lead to enforcement actions.
Where it's tested
AUD: Engagement Acceptance & Quality Management — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Before accepting a new audit engagement, who is responsible for initiating communication with the predecessor auditor, and what permission is required?